Quote from: Jewan420 on Today at 05:34:43 PM

Quote from: SuperBitMan on Today at 02:10:03 PM

@Barikui1 Bitcoin is not going on extinction so why the rush, you sound like Bitcoin will soon end or stop growing, some people rush into Bitcoin and it lead them to rush out also, the only reason you will be rushing to buy Bitcoin is if you are a trader, as a long term Bitcoin investor you don't need to rush take your time and set things in other, build your backup funds which is your emergency, reserve and float funds, I'm not saying you should make them all strong before you start accumulating your Bitcoin but you should build them to an extend because of you don't have a good backup funds you are at risk of always dipping hands into your Bitcoin, would you prefer that a newbie who has no backup funds of any kind and who can't build his backup funds and Bitcoin investment together because of his small financial strength to do so, if this is your advice to them then you are leading them to financial crisis which will make them sell off all there Bitcoin.
As much as you want people to start Bitcoin investment they shouldn't rush into it, except their traders, as for those who wants to hold for long term don't rush if you have the financial strength to build your backup funds and your Bitcoin investment together fine and good but if you don't build your backup funds to an extend first, Bitcoin is not going on extinction, it will be more time wasteful that you accumulated and later sold them all even on low price because of little emergency issues that you would have settled with an emergency or backup funds.

Yes, it is important to build strong backup funds rather than rushing into investing. But if you consider it as the primary investment, then you are wrong. Backup is certainly important which acts as the main protection of investment, but if you do not have any investment fund, then what will you do with backup funds for investment. I would advise a newcomer to start investing without any delay with basic knowledge and ability. I would not advise a newcomer to delay investment at all to build a backup fund.

However, you have to be careful that a newcomer does not build strong backup funds or rush into investment. I would not even advise you to be aggressive in investment without preparing backup funds. If you can qualify to be aggressive in investment by preparing the necessary funds, then being aggressive in investment can be fruitful for you. In the long run, ignoring backup funds and rushing into investment or being aggressive in investment can push your investment towards loss, which you do not pray for at all.

It seems that you are correct about the various balances Jewan420 - since there is a need to get started, yet also potentially concerns about the extent to which the newbie BTC investor is able to be aggressive in buying BTC.

Maybe an example would help?

Let's say that we have a guy who has income and expenses that are somewhat irregular yet there still is a general range, of $600 to $1500 income and $800 to $1,000 expenses. The ultimate goal would be that the guy has a minimum of $3k emergency fund (for 3 months expenses), and perhaps if the guy just got paid $1,200 for this month, and maybe he had around $800 left over from the previous month (then he already had $800 in his emergency funds),and yeah maybe I am being too optimistic to be describing that a beginner would have such cushion already in place.

Maybe we could say that the guy just got paid, but he ONLY made $600, and if he had $800 left over from the previous month, then he already knows that his expenses might be $1k, so that ONLY leaves him $400, which the $400 could be considered as his already existing emergency fund that is barely enough to cover half a month especially since this month was only thee minimum pay of $600, and so he might be in a bit of a tight position to buy any bitcoin, yet he would not be excluded from getting started with even $10 per week or even $50 per week, and if he did $50 per week at the end of the month he would have $200 in bitcoin and $200 in his emergency fund, which is a bit scary, including that he needs to build up an emergency fund with a minimum of 3 months expenses but then also he is wanting to learn about bitcoin ands start investing in bitcoin too.... so yeah, he may well have to hunker down to increase his income and/or cut his expenses but he can do that at the same time of building his BTC investment and his emergency fund at the same time, but he also has to realize that he is engaging in risk while he is working to build his emergency fund up to 3 months..so then likely his bitcoin is also serving as his emergency fund during that time (which is not a good or preferred practice, but there is also should be an understanding of the practical matter of both investing in bitcoin and building an emergency fund, and it could take a guy like this a year or more just to build his BTC and his emergency fund up to 3 months each.

There also is no exact formula in regards to how guys might balance the risks that they are taking, yet as you said Jewan420, it makes very little sense to build up an emergency fund first when the emergency fund is not protecting any investment, since there is no investment to protect...so the practicality might need to be considered, and surely any of us should want to get to a situation in which we are not continuously stressed out about not having enough money, which is part of the reason to build up the emergency fund, and even after the emergency fund is built to 3 months, it still can be difficult to rest in comfort, since there should be a goal of never needing to tap into such emergency fund, so in that sense, there is likely some needs to continue to build various kinds of back up funds to account for irregularities in pay and expenses but also desires to invest aggressively into bitcoin, but then if mistakes are made in regards to being overly aggressive investing into bitcoin, then fixing those kinds of mistakes should not be coming the emergency fund, since that just demonstrates sloppy and weak cashflow management to be unable to figure out how aggressive that you are able to be, since that should be the kind of calculation that is completely in your ability to do and you should not be taking from emergency funds if you make mistakes, but instead have other funds to take from if you make mistakes.

I am not even saying that you cannot make mistakes, but I am saying that your mistakes should not cause you to have to dip into your emergency funds for non-emergency reasons merely because you created your own emergency due to bad cashflow management.. In the end, you can do whatever you like because it is your money, your life and your investments (or not), yet if you fuck up due to your own mistakes, you are the one paying for it, which is part of the reason to employ strong cashflow management practices, even if at the same time you want to invest into bitcoin in such a way that is as aggressively as you are able to invest, without over doing it... and the reason that you do these bitcoin investment and cashflow management things is for yourself and your own long term benefits...which means that you have to set your own priorities in such a direction by your own imposition, and no one else has set those priorities for you. You choose how you want to proceed in a way that you believe is going to be to your advantage..