You are actually right and I also share the same sentiment as you bro, the best possible way to accumulate and invest in Bitcoin is through the DCA accumulating strategy and it should be done according to how much you can afford to do away with for a very long period of time, not investing an amount that will eventually put you under unnecessary pressure because it's actually wrong to invest money you should be using for your upkeeps, or money that should be kept as part your emergency funds, because once you do that, by investing more than what you can afford to do away with for a very long time, it would be just a matter of time before you temper with your Bitcoin investment just to sorts out some basic financial needs, so in essence of what am trying to say is that while investing in Bitcoin, it's very important to invest only what you can afford to do away with, so that our discretionary income and our emergency funds will be bogus enough to carry all our financial borden's, not a situation of falling back to our holdings because of an emergency situation.
yes, I totally agree with you. But it doesn't just apply on Bitcoin investments only.
Any form of investment that is long term, you need to have a rethink before investing and also you need to know the money that would be used in that investment so as not to be forced to touch money you've already invested.
A lot of people have this habit of jumping into investments just because either they've acquired a little sum of money , without having a rethink of what to do during the rainy days, the days when the wouldn't have quite much. And then after some time the begin to touch money invested, little by little and then opt out for short term.
Yeah, that is why every investor needs to buy according to their capital and peroid of earning, for instance someone who earns a 100k weekly in their local fiat currency is not expected to be DCAing on a daily basis but rather weekly since their capital for investment comes weekly, same applies to an investor who earns monthly, those who are suitable for daily accumulation are investor who's income are made on a daily basis. However one is not supposed to invest all their income on Bitcoin just because it's a good investment option, a wise investor would set aside their reserve funds and put in a capital that would be easy for them rollover at their preferred intervals of investment, take for instance 20% of weekly income is not a bad idea, every investor needs to implement good plans that would aid their investment journey so they won't be forced to tamper with their portfolio and take profits when it's not due.
for sure , I do speak out of experience, I came to know about Bitcoin back in 2017 when Bitcoin when it experienced an upsurge, and back then I felt I was too late to invest, I was waiting for a dip, so I can buy but I later realized I was doing it wrong, because I normally used my personal money for upkeep to invest and I had little savings, it later made me want to do short term until I heard about the DCA strategy which have been helping me till now .
Of course DCA is amongst the best of ways to try to figure out your level of aggressiveness, which largely means that you should be building up various kinds of back up funds, such as your emergency funds, so that you never have to dip into your bitcoin investment at a time that is completely of your own choosing, and if you are investing 4-10 years or longer into bitcoin, you should be figuring out ways that you never have to touch your BTC.. and also hopefully, if you manage your cashflows in a good way too, you also never have to touch your emergency fund absent an actual emergency (rather than an emergency that you created based on your own bad management of your cashflows). For sure, some folks have irregular incomes and/or irregular expenses, yet you are the person in the best position to create some kinds of balance in terms of various cash floats to be able to make sure that you always have enough for your various expenses, and you can ONLY invest into bitcoin as long as your various expenses are clearly covered, even when there are erratic aspects of your income and/or expenses.
Even folks with fairly straight forward income and expenses still might want to project out their future cashflows 6-18 months, and surely the more complicated your income/expenses such as if you have a family, business or some kinds of things that cause irregularities, then you may well need to keep some extra cash cushions in various ways in order to anticipate extra expenses or shortages in income before they happen. The more you practice managing your cashflow, the more accustomed you should become in regards to figuring out how aggressive you are able to be with your bitcoin investment without over doing it.. .so for example, if you tell yourself that no matter what you want to invest $10 per week into bitcoin for the next 6 months, and if you have extra money you would like to unvest up to $100 per week, so you have a range for yourself, and maybe you even have $120 that is in a side backup fund that you have to make sure that for sure you have 12 weeks worth of cash that is already available to buy $10 per week of bitcoin for 12 weeks, and so you just manage the next 6 months and some weeks you may have up to $100 you can put in, and other weeks, you only have $50 or $30, so you get used to these matters, and you might also try to consider if there might be ways that you can increase your income and/or cut your expenses...
And of course, if you are still in your early BTC investment stages you may be building up your emergency funds at the same time that you are building up your bitcoin investments, and so if your expenses might be between $500 and $800 per month, then your saving of 3 months expenses would be to make sure that you have $2400 within your emergency fund, and you build this at a similar pace as building your bitcoin investment. But if you find that you have more than $2,400 in your bitcoin investment and less than $2,400 in your emergency fund, you may well emphasize putting a higher percentage into your emergency fund to get it up to at least 3 months of expenses, and if you have your emergency fund already in place and various other kinds of back up funds, then you are in a better position to be more aggressive investing into bitcoin. You do not have to establish your emergency fund prior to investing into bitcoin.... especially since with bitcoin, is it important to get started investing into bitcoin as soon as you figure out that you are interested in investing into it and that you have discretionary income that can be used to invest into it and that you are expecting not to tap into your bitcoin investment for 4-10 years or more.. which surely can feel like a long time for people, but that should be a bitcoin investment mindset in regards to figuring out how to treat bitcoin as an investment rather than as a trade.
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In all, everyone should invest at the level of the discretionary income such that it will give them convenience to also sort out their other expenses that are of necessity to them. Choosing to invest weekly or Monthly should depend on when your cash flows because if you choose to make an irrational DCAing it can become problematic to you, that is why investing same amount at different intervals is the best way because you will be consistent since your time of DCAing will meet up with the time of your cash flows (income). Though investing with 20% of your income can be problematic especially for someone who has a lot of responsibilities with money except for someone who doesn't have much responsibity that can conveniently invest with 20% or more of their income and still be able to maintain it till they have gotten a big portfolio. Having reserved funds is also one of the prerequisite to a successful investment since you won't tamper with your holding anytime soon because any other financial obligation that may arise after investing, your reserved funds can attend to them.
Of course, we cannot necessarily assume that 20% is overly aggressive investing into bitcoin, yet surely the newer a person is towards investing in bitcoin and building his bitcoin investing systems and his cashflow management systems, then the more cautious he likely needs to be to make sure that he has his systems fairly solidly in place, and so then if he has systems more solidly in place, then he should be able to reasonably assess his level of bitcoin investment aggressiveness.. meaning that the more solid his cashflow management systems and back up funds, the more aggressive that he can afford to be..and each person has to figure that out in terms of various obligations that he might have or in terms of the extent to which he has irregularities in his income and/or expenses.
It would be very wrong if there are people who still have the mindset of buying Bitcoin to sell it again in the near future just because there is a slight increase in the price of Bitcoin.
I have my short-term, medium-term and long-term Bitcoin investment plans, and so far, all are successful and I've made more money in my short and medium-term if you must know.
Since you are accumulating bitcoin for three different purposes, I easily believe you that you have made more money in your short-term and medium-term investments combined over your long-term investment because from the way you are sounding, it is possible that you would choose to invest more money in your short-term and medium-term investments over your long-term investment. From the year you registered on the forum, you have been accumulating bitcoin for short-term, medium-short, and long-term for close to 4 years now. The only reason you made more money from you short-term and medium-term investments combined is simply because you allowed yourself to be distracted from your long-term goal, which weakened your long-term accumulation power. Imagine if you had used all your money to accumulate bitcoin only for the long-term purpose; you would have gotten a decent amount of bitcoin by now, and from the year you started accumulating bitcoin, you would have been in big profit that would even surpass the profit you have made in your short-term and medium-term investments combined.
I think that it can be quite difficult to figure out the extent to which another person would have had been better off just investing rather than holding, especially ONLY over one cycle or less... even though surely with bitcoin, many of us likely realize that the longer that we have been in bitcoin (such as more than a couple of cycles), then the the more difficult it would have had been for the trader to out perform the person who was mostly just accumulating bitcoin and/or holding it.
Also, for example the last couple of years, from late 2022, the BTC price has mostly been up.. so the better strategies would have had likely been just buying and holding, and sure there could have had been some folks who figured out how to trade it, yet that seems ridiculous to even try when we can see that there was nothing wrong with getting something like 4x profits from merely buying and holding. Why does anyone need more than 4x profits? especially if there is longer term in mind.. .and also think about someone with 8 years investing. Surely just investing steady for 8 years starting in early 2017 is one thing that might have had brought close to 10x in profits.and a guy investing
$100 per week investing $42k and having 4.78 BTC. yet if the person had been able to front load his investment and perhaps buy $42k worth of BTC around $5k, then that would have ended up with 8.4 BTC.. and sure he might have still been able to accumulate more BTC in the past 8 years, yet he would have had around 20x in profits on his frontloaded investment that had an average of $5k per BTC..