If you are taking partial profits from your bitcoin investment within a short period of time means that you are a trader and before you know it, you will feast on your bitcoin investment gradually killing the focus of building and growing your bitcoin investment overtime. Anyone investing in bitcoin shouldn't use money for his important needs to invest if not you are gambling and not investing since you will sell immediately your needs arises, and if bitcoin price is below your entry point, you will run at loss. Such people will call bitcoin a scam because they didn't invest in the right way with their discretionary income.
It is important before investing to prepare an emergency fund first, so that when there is an urgent need not to sell bitcoin in the middle of the road, anyone who provides emergency funds will be safe from any needs.
You don't need to prepare an emergency fund before getting started investing into bitcoin. One of the most important things in investing into bitcoin is getting started.
So it is not surprising that someone calls bitcoin a scam because of the wrong way they rely on bitcoin in times of urgency, investing in bitcoin must indeed be done in a mature way so that this does not interfere when the plan has started from far away.
Yes. Of course, we should not be using our bitcoin as our emergency fund. So you are correct in that, but we should still not be delayed in getting started, perhaps we have $10 so we can get started investing into bitcoin? And perhaps we can work our way up to larger investment amounts invested into bitcoin.
It seems that an overwhelming majority of people already will have 2-6 weeks of cash, even poor people, so it is not like a person investing $10 into bitcoin would be using that bitcoin as their emergency fund.
Another thing is that for sure, if a person cannot figure out if he has $10 to invest into bitcoin, because he is not sure whether he has any discretionary income, then yeah, people without discretionary income (or if they are not sure if they have discretionary income) they should not be investing into bitcoin.
Must manage cash flow income well.
Save for emergency funds.
Determine what percentage for DCA from your income.
The rest can be used for living expenses.
Then the investment will not be disturbed.
None of these are required before getting started. Why did you not describe the most important thing about bitcoin investment is "getting started?" You must not know that the most important thing is getting started... or probably you disagree. You think that waiting is the most important thing. Makes no sense.
DCA is a good idea for new and experience investors investing in BTC,provided you have control over your emotions and a long term vision as part of your BTC investment strategy,it we take you a long way,just buy and hold be a committed investor with believe.
Can you help to control your emotions by your position size? If you start with $10 per week, then you may well not feel too many emotions as long as you have enough money to cover your various expenses. If you start with a large amount and you are not really sure about your expenses being covered, then you are likely going to become more emotional.
Let's say that your income is around $30k per year (maybe going up around 4% per year), and on average you have been investing for
$150 per week for the past 4 years, and so you had invested around $31,350 into bitcoin (quite aggressive since it is about 25% of your current income, and the amount invested is 1 year's income) and you have accumulated about 0.87105 BTC. Thus the
BTC spot price value of your stash is around $84k, and your 200-WMA value is $38.3k), so you might not feel too many emotions about your BTC investment, even though you are still wanting to grow your investment.
You might not even mind continuing to invest $150 per week for sometime longer.. perhaps even another 4 years, because you really want to get your BTC investment to a point that your 200-WMA value is worth more than 10x your current annual salary, and perhaps you might have some other number in mind (such as supporting yourself at a higher standard of living), so you consider that you have to keep accumulating BTC, and if you might get a raise, then you might be able to continue to buy more BTC, and you are not really emotional about your investment, you are merely focused on building your BTC stash size with weekly investments into it..