Quote from: obuoma on Today at 03:18:34 PM

Quote from: JayJuanGee on Today at 08:36:25 AM

Quote from: TEBTC on January 11, 2025, 10:50:09 PM

I quiet agree with you because the fact is that DCA knows kind of investment plans doesn't work for shitcoins because some of these coins the growth rate over a given period is very low so in terms of bringing back value on investment is not there so applying DCA to such investment will be wast of time

First off. You did not need to cite my whole post in order to make your point.

Second, it seems that DCA is best applied to projects that have long term value, such as BTC, and so it can become quite problematic when folks apply DCA to shitcoins, and so in those kinds of cases, the DCA might cause the loss of more money as compared to if they had not applied DCA to such crap.

So yeah, I think that the point is that we should be careful if we are going to apply DCA to something like a shitcoin, since surely it could take a bit of time to even reasonably that the shitcoin is even worth investing into in the first place, and so many times, with shitcoins, the presumption should be that they are not worth investing into unless you can figure out some angle to invest into them, and even if you conclude to invest into them it may well be ONLY really justified as a trade (to get in and out) rather than trying to stay invested in them in long term ways that is way more justified for something like bitcoin... and yeah, even with bitcoin, there could be some risks, concerns or even timeline considerations that a person might have, so frequently people have to also figure out reasonable amounts that they can invest based on their own particulars, including but not limited to the levels of their discretionary income and perhaps the extent to which their cashflows might be consistent enough in order to justify a decision to invest into bitcoin for 4-10 years or longer rather than merely coming to bitcoin from a perspective that aims to trade it on a shorter than 4-year timeline.

Permit me to ask Sir, how does someone apply this DCA that is always mentioned here if the person does not have like a regular job. What I mean is someone who do business that brings profits in a way you cannot calculate when it will come. Sorry if this question have already been asked because the little I know about the DCA method is that it involves investing in Bitcoin at a regular interval of time like weekly or month as the case may be. You know someone running a business like me might find this very challenging to keep up with the requirement of weekly or monthly investment because sometimes business bring so much profits but sometimes the profit is not much plus delays can happen too.

Of course we have 665 pages in this thread, so the topic of irregular income has come up from time to time, and surely there is a need for anticipated future income before it continues to be prudent to buy bitcoin, since if we cannot assure our income, then we should not be locking away value into bitcoin for 4 to 10 years or longer, since that would be trading (trying to play the wave) or gambling rather than investing. So, when we put money into bitcoin, then each time that we do that, then we should be consider that money to be locked up for 4-10 years or longer. Of course, some kind of an emergency or unexpected situation could happen in which we end up having to tap into our bitcoin investment that is NOT at a time that is completely of our own choosing, so our investment timeline could end up getting cut short.. and another thing, is that I don't even consider 4-10 years to be a long term investment or anything that we should shoot for with bitcoin, yet there are people who are more elderly or they have health considerations, so it would still be reasonable for them to invest into bitcoin for at least 4 years, but if they are putting money into bitcoin for less than 4 years, then I would consider that to be a trade or a gamble rather than an investment.... ..

More to the essence of your question, the more erratic or irregular a persons income and/or expenses, the more likely that they are going to be having to hold way more quantities of various kinds of back up funds and emergency funds that likely cover longer periods of time, and if he is going to invest into bitcoin, he has to keep in mind that he should not be wanting to include his bitcoin as part of his emergency fund until maybe many years down the road after he had already gone through a couple of cycles.

So, in essence, if a guy with irregular income/expenses wants to regularly invest into bitcoin, such as weekly, then he may well need to hold some or all of that in advance so that he is able to keep up with keeping track of his irregularities of his income and/or his expenses.

Let's say that a guy has some income that comes in every week, and other every month and other every 2-3 months. Most of his expenses are staggered to be monthly, but he also has some irregularities involving his expenses too. Guys in these kinds of situations may well need to project out their income and their expenses for 12-24 months or more in advance so that they can see various places that they might have short-comings and surely the next 1-3 months are more important in regards to the specifics as compared with timelines that are 12-24 months into the distance, even though the 12-24 month timelines might still have some ballpark ideas about projected best case scenarios and projected worse case scenarios, and frequently, it is way better to project out worse case scenarios so that you know that you have enough to cover those worse case scenarios, so for example, if your monthly income ranges between $1k and $4k per month, and your expenses range between $1,500 and $3k per month, then you likely should be projecting out your income to be $1k per month and your expenses to be $3k per month and making sure that you have enough cash to cover the difference for several months into the future, and so you might not be able to invest any money into anything including bitcoin or anything else until you are sure that all of your expenses are covered, and maybe you resolve these matters on monthly basis or maybe it is a bit more irregular in regards to various determinations and resolutions that you are able to make.

Let's say that you want to invest $100 per week into bitcoin, but you believe that if you commit to that, then you might not be able to cover your other expenses, so perhaps you have some reserve funds that are set aside that are primarily for buying bitcoin, yet if your other reserve funds run out, then you will have to tap into that fund that is set aside for buying bitcoin.. so perhaps you have a fund that is $1k in total value, and you tell yourself no matter what you are buying $10 per week in bitcoin from that fund, and if things are going well and the fund remains at $1k, then you will invest $100 per week into bitcoin, yet if the fund goes down to $500, then you are ONLY going to invest $10 per week into bitcoin.. .and so you do what you can to keep from tapping into the fund, and you might even say to yourself that if the fund goes below $200, then you are going to have to stop buying bitcoin, but you work hard to make sure that the fund does not go below certain thresholds. Perhaps if the fund becomes larger than $1k, then maybe you would authorize to allow yourself to buy more than $100 per week in bitcoin. .up to a certain amount as the cash is extra in that reserve account, you already have established various thresholds in which your behavior is going to change as the money is coming in, yet at the same time you have are maintaining certain reserve amounts.

I would think that you would have reserve categories of funds that fit more than one category, and of course certain kinds of expenses are more important than others, for example rent, utilities, basic food, some transportation basics and maybe some inventory replenishment expenses in regards to some kinds of businesses, and other kinds of expenses have more flexibility - eating out a restaurants, vacations, and surely some expenses might be optional, yet they are still important for maintaining relationships, whether personal or business related, so each of us still would need to figure out how to priorititize certain categories, and we might even tell ourselves that investing into bitcoin is a priority, which surely it might be, and buying more bitcoin might be less of a priority than making sure that we don't sell any, so there can times that we might have to stop buying bitcoin and to take care of our other matters and we hope that our level of funds do not become so low that we end up running out of various kinds of back up funds including emergency funds that might be the very last defense prior to having to tap into our bitcoin, which we surely shoudl not want to do during our first cycle or two of investing into bitcoin.

Quote from: obuoma on Today at 03:18:34 PM

Let me be a little open to you so that you can guide me properly. I do many small businesses and I will use one to for example. I run small export business of consumables to my friends overseas who do still eat our local foods over there. I buy and send to them base on demand, not that it is on a large scale and depending on what they demand, I will use flight or send through shipping lines. Through flight is faster but cost more to send and reduces my profits while shipping takes more time but cost less to send thereby increasing my profits. This is one of the reason for the irregular income I stated before and the reason I want more guidance on this if I can start using the DCA method to invest in Bitcoin.
Thank you as I await your response.

In your case, you might have to keep some funds on hand for various ingredients or for shipping costs as you mentioned, and you also might get some pay in advance, and so sometimes when you get paid, you might have to hold part of your income aside for current and for future expenses... surely the more business you do, then the more expenses you are going to have, yet at the same time, if you have properly calculated the variabilities, you can still make sure that you have various cash cushions and maybe even some working systems in which any time you get paid, you put half into your various costs and the other half into your reserve funds, and sure you are suggesting that your costs are way higher than your profits, so you still would have to figure out ways to project out expected sales (income) and various kinds of projected expenses including considering projecting out worse case scenarios and then figuring if you still have enough left to buy bitcoin with that. Yeah, guys like to live on the edge, and they do not have any cash cushion, which surely might not be as BIG of a deal if whatever cash cushion you have is not volatile (like a bitcoin investment), so frequently we end up having to create way larger cash cushions once we start to invest into something like bitcoin since we never want to sell any bitcoin at a time that is not completely of our own choosing.

It surely could be that you are not even planning to hold bitcoin for more than 4 years or more, and if that is true, then you are trying to trade bitcoin and to play the wave rather than investing into it... so personally, I don't recommend using bitcoin as a trade rather than an investment, yet at the same time, I know guys are going to do what they like..and surely for investment, you need to figure out systems to strengthen your cashflow management and to main various kinds of reserves so that you can continue to invest into bitcoin for 4-10 years or more and so that you will not have to sell any of your bitcoin at a time that is not completely of your own choosing, which hopefully would be 10 years or more, unless you have some kind of age or health kind of issue that might cause you to have a less then 10 year investment timeline.