...Then just invest on Bitcoin money that you don’t have special allocation on it so that you will keep your finances normal even if a financial problem arise. As already pointed out by JJG, people frequently invest all their money for the sake of profit even though it’s allocated for something important.
A salary earner who invests all their money into Bitcoin for the sake of profits is not a real investor, the person is a trader trying to double his income with the idea of Bitcoin investment but it's a wrong move that would backfire since Bitcoin is a long-term investment opportunity, I mean that the person would be forced to sell at some point especially if he's one who earns on a monthly basis. There's a reason why Bitcoin investment is best done with discretionary funds, cause at that point you've already separated the funds meant to essential expenses from that meant for investment, but going in to the market with all his salary for the month especially if he's yet to meet his target or invest for a decade or atleast one complete circle, would force him to withdraw from his portfolio to solve his essential needs.
And it doesn't take long for him to panic when the market drops sharply. That will make him sell his Bitcoin and think about buying at a low price after the decline is over. And investment should be separate from funds for other purposes so that it will not cause financial difficulties for you in that month or in the coming months. So using all the money for any investment even savings is not a good idea because after all, he must be able to meet all his living needs. This requires an understanding of how to start investing.
JJG has shown us how and we can use it or modify it according to our circumstances. We use DCA in investing but the amount of money must be different.Of course each person should be attempting to tailorize both his bitcoin accumulation strategies and his cashflow management strategies to his own circumstances, so in that regard, each person is likely to have variations in the way that he tailors based on his individual circumstances, even if some guys might have similar goals to accumulate as much bitcoin as they can within their own financial and psychological circumstances.
In this thread, I am trying to suggest ways that guys might manage their BTC once they start to feel that they have enough bitcoin or more than enough bitcoin.. so there is a bit of an assumption of having had already gotten through bitcoin accumulation by the time the ideas of this thread start to become relevant.. such as the employment of sustainable withdrawal practices (price-based and/or time-based).
I attempt to focus more on bitcoin accumulation strategies and/or cashflow management ideas in
my bitcoin investment ideas thread.
Even that bitcoin investment ideas thread is right around 3.5 years old, so sometimes there are desires to attempt to consider and talk about these kinds of investment ideas within a more contemporary and active context, whether related to bitcoinm accumulation, cashflow management or otherwise... so in that regard, it does not hurt to continue to bat around those kinds of ideas within that other thread.
And it doesn't take long for him to panic when the market drops sharply. That will make him sell his Bitcoin and think about buying at a low price after the decline is over. And investment should be separate from funds for other purposes so that it will not cause financial difficulties for you in that month or in the coming months. So using all the money for any investment even savings is not a good idea because after all, he must be able to meet all his living needs. This requires an understanding of how to start investing. JJG has shown us how and we can use it or modify it according to our circumstances. We use DCA in investing but the amount of money must be different.
Of course, just the way that our skin color is different, so is our income and discretionary income. In order for you to invest without selling your bitcoin when it's not of your will, you should use an amount from your discretionary income that wouldn't be a burden to you so that you can continue buying with DCA regularly every week consistently and persistently for 4-10 years and above. Before you know it, your portfolio will be increasing gradually overtime.
Bitcoin investment is a long-term investment for the future so there is enough time to keep on accumulating till you reach your bitcoin target, if you do it the right way and not after little profits or invest over aggressively outside your discretionary income.
Surely the level of aggressiveness that any of us chooses to employ might have to do with our own personalities and/or maybe how well organized that we are, and likely guys who are better organized and keeping better track would be in a position to be more aggressive than someone who is less organized.
But yeah, our choices in regards to being aggressive or whimpy within our own income parameters has some subjective elements to it, and frequently, I attempt to suggest that all newbie investors should attempt into invest into bitcoin as aggressively as they are able to without overdoing it.. but at the same time, if a person is either in a bad cashflow management situation or maybe his psychology and/or comfort with bitcoin is not very strong, then he is likely better off to keep himself more conservative in his investment into bitcoin until he might become more comfortable with bitcoin and with his cashflow management systems and cashflow management practices.
There may be a certain quantity of folks who are new to investing in bitcoin and they are also new to investing into anything, so the less investment experience that anyone has, then the more time that they might need to spend getting used to their investing into bitcoin, whether they start out at $100 per week or $10 per week or some other quantity that helps to get them used to buying bitcoin regularly and also making sure that they get comfortable with their buying process and that they are not screwing that part up.. and even some guys might ant to start out and investigate into a few places in which they can buy bitcoin, but then they also might feel some necessities to get more comfortable with applying their bitcoin investment and their cashflow management practices to their own 9 individual factors, too.