Quote from: JayJuanGee on March 30, 2025, 03:16:56 AM

Quote from: Negotiation on March 30, 2025, 02:48:02 AM

Quote from: JayJuanGee on March 28, 2025, 07:07:41 PM

Maybe an example could be helpful? If a guy with a $30k-ish income had been investing $100 per week into bitcoin over the past 4 years, then he would have had invested right around $21k and he would have had accumulated about 0.58 BTC..

I want to invest in the DCA method, but it is difficult for me to earn $100 per week. In that case, it may be a good idea to deposit any amount of Bitcoin, more or less.

Of course, I am using $100 per week as an example, and you have to adjust your investment amount to your own discretionary income and not go beyond your discretionary income... maybe starting out with 50% of your discretionary income at most when you start.. but you have to figure out your numbers in terms of what might be reasonable and/or how aggressive that you can afford to invest into bitcoin without over doing it, and if you are investing beyond your discretionary income then you are over doing it.

Discretionary income is the amount of money that you have left over after you have accounted for your expenses. If you make mistakes and you invest too much and you think that you are getting in and out of bitcoin in less than a 4-10 year or more timeline, then you might not be thinking about bitcoin properly. It can take a long time to build an investment, and it will take even longer if you end up fucking things up by investing too much and wrecking yourself..

Quote from: Negotiation on March 30, 2025, 02:48:02 AM

Quote from: JayJuanGee on March 28, 2025, 07:07:41 PM

So really after 4 years of investing fairly steadily into bitcoin his average cost per BTC would be right around the same at the 200-WMA, so surely he might feel that he is in a pretty good place in regards to how much BTC he had been able to accumulate, yet he still might feel that he is quite far from his ability to live off of the BTC since 0.58 BTC would have a 200-WMA value of $26.2k and a spot value of $50.6k. I have been frequently suggesting that a guy can withdraw 10% dollar value based on the 200-WMA, yet with current values that would ONLY allow this particular guy to withdraw at $2,620 per year, which is way below his current income.

But here it seems to me that when someone deposits Bitcoin for four years, they will not achieve this minimal profit. I think they may be able to earn or make a profit of two to three times the original budget, or much more. In this case, the time at which they invest may be important. If we look at the past years, those who have invested in Bitcoin consistently have actually been able to achieve much higher profits.

There are no guarantees, and past performance also does not guarantee future results. You have to figure out how much you are going to put into bitcoin with a realization that you could lose up to 100%, while at the same time, bitcoin also remains an asymmetric bet to the upside so you could end experiencing price gains that are much greater than your investment amount, like you suggested. Bitcoin continues to have a lot of upside potential, but sure, going up is not guaranteed.

I frequently suggest that guys should put their finances in such a position that they can invest into bitcoin as aggressively as they are able to without overdoing it, and if you overdo it, then there is no one to blame but yourself, so you have to both figure out your budget, but you also have to figure out how to strengthen your cashflow management practices, which also likely means that you should have back up funds such as emergency funds and various reserve funds, so that you never have to sell any of your bitcoin at a time that is not completely of your own choosing...which again I suggest to be 4-10 years or longer before you even start to consider selling bitcoin unless you have been able to front load your bitcoin investment...and for sure, you need to figure out how to move from bitcoin accumulation phase an then to maintenance phase and then to some kind of a sustainable withdrawal phase or some other variations of those various phases of your bitcoin investment journey.. which could well be a lifetime journey of having bitcoin as part of your investment portfolio.

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I really find all this your advice very helpful and I have learnt alot from what you just said here, because there was a point I was buying bitcoin aggressively going beyond my financial capacity because of a DIP that occur and my friends where buying bitcoin aggressively go I decided to follow which almost made to invest all I had, but thanks for your advice that everyone should stick to their fanancial capacity and not to over do.