I agree that the main focus is the $5k funds, but the $50 per week is not an automatic decision that he should divert all of it to BTC in contrast to keeping some of it or all of it still going to his historical investments.  Nonetheless, I do consider that the most compelling answer would be to transition the $50 per week towards bitcoin - yet there could be some unknown facts that might cause him to weigh the considerations differently, such as if he were to have tax advantages with the account or if his employer were matching the funds, and surely I had not mentioned those kinds of possibilities that could exist with the other investments that he had been doing.


Of course, there are odds that the BTC price will not dip that far, and if the BTC price keeps going up are you going to adjust the prior amounts?  Since you are presetting the amounts, you likely would be setting from our current price or perhaps from the price in which you bought BTC last.. but if the BTC price keeps going up without any of your orders filling, are you just going to keep your buy orders in place.  Right now a 30% dip from here at $118 would take your lowest automatic buy order to somewhere in the $82k price range, which surely seems low from here, but not outside of the realm of what could end up happening.. but yeah there is also a risk that none of your buy orders would get filled, ever.. even the one going down 10% (which is around $106k), and so then you don't have shit for bitcoin, yet at the same time, you have $1,500 i cash that you had not used... By the way, I am maybe using stronger language than I need, and holding back 30% for buying on dips is not totally unreasonable... .


I might have had considered 50% or more for this category, or maybe expediting your DCA portion to be over a shorter time period of a couple of months.. but yeah, these are surely flexible categories, but still good to lock into some commitment because if we give specific facts, you need to employ in a specific way otherwise your plan is not clear (especially when talking about it in forum thread like this one).


Exactly.  If you are specifically that person, you likely have to commit to something, since even non-committing has consequences, so it is likely better to commit, even if like you mentioned previously, some of the money, could be put into some kind of a reserve fund that would then allow considering what to do with that part later, even if it is put into a reserve fund it is held in cash or cash equivalents, unless you actually decide to put it in to some kind of a fund that locks it up for a period of time.


Surely people who have lump sum amounts have more options than people who are completely reliant on their discretionary income.  Of course, some young people, and even some people who have never gotten into any practice of investing, they might not hardly have any lump sum amounts available, and surely I am presuming that even folks without any investments, they still may well have 2- 6 weeks in cash, since there are likely not very many folks who completely operate on $0 in extra money and 100% wait for their paycheck.. and even though surely there are people who live like that, it seems to me that we should at least aspire that we are trying to make sure that we are not that kind of a person in the future, even if we might have had lived that way in the past... just as a basic safe living style, we likely need to try to keep a couple of weeks of cash as our back up and extra funds, even if we might spend 100% of our paychecks within the period that we get them.


That is reasonable, and yeah there can be variance based on the specific financial and psychological facts of that particular person including that in regards to exactly what he chooses to do, he may well want to take into account his 9 personal factors, too.


I have frequently considered that if a guy puts a decently large amount of money into bitcoin at one time or over a short period of time, then he is way more justified (and reasonable) to hold some money back for buying on dips as compared to guys who are not putting in large sums of money at once and who are merely DCAing within their discretionary income on a weekly-ish basis.


A thing with reserves is that they could be for a large variety of things.  1) saving for a new phone computer, 2) saving for a car/motorcycle, 3) buying dips, 4) wife/spouse wants a short vacation in 3 months (maybe overnight or a couple of nights) or maybe it is a fancy dinner or a birthday gift, 4) child wants a bicycle for his/her birthday in 2 months, 5) plumbing/roof needs to be fixed but there is some ability to delay it, but if it is delayed for too long it is going to end up costing more money, and/or 6) other things

Some of the items might have income earning potential, so would likely be a higher priority and some of them might be for luxury goods that might have some flexibility in terms of deciding how much is wanting to be spent on such.

Since the money had not been spent, it can also be used as emergency funds if an emergency happens.
 

Yep.  There is some advantage in spending some times just getting used to what we are doing.. since if we are either new to investing and/or new to bitcoin, we might need to get used to channelling a certain quantity of our discretionary income every week, so just as we are doing it, every week, it may take us several weeks before we start to feel comfortable with the amount that we are spending and that we are still able to meet all of our expenses, even though we are dedicating a certain quantity of money on a weekly basis to go into bitcoin.
 

He is already in a position to be aggressive and has quite a few options beyond what we have discussed, yet if we were to give an example of a newbie to investing, newbie to bitcoin, he might not have as many options, yet he still can start with what he has, and usually the very beginning points involve getting started buying bitcoin through DCA and building up emergency funds.  I hardly see any reason that such beginner needs to get into buying dips and things like that, except maybe to the extent he might want to try to time the potential dips each week... but maybe he is starting out with $50 per week that he has to figure out want to do with and part goes to buying bitcoin and the other part goes to building up his emergency funds.  I see little advantage in further diluting the $50 per week and getting distracted by trying to figure out whether there is a dip or not.. just buy every week, and then may be by the time his emergency funds are in place and a bit of his reserves are in place, then maybe he might have more luxury to hold back some of the value for buying dips... so buying dips does not seems like a very good beginner approach to bitcoin, even though a lot of beginners (maybe even an overwhelming majority of beginners) get distracted into considering that there is some value (to them) to structure their approach in a way that includes trying to buy dips.


Just adding bitcoin to one of their new activities (priorities) seems to be something that many folks need to get used to, since many people (maybe even an overwhelming majority) are already not even used to investing. so adding bitcoin to their lives results in their needing to learn some fundamentals about investing and cashflow management, even though I assume most people have the skills/knowledge level, even if they have not put such skills/knowledge level into practice. they are capable of learning the basic skills for bitcoin investing.
 

Knowing our own limits and working within our own limits remains important to both build a bitcoin investment and strengthen cashflow management and also to not end up screwing it up. No one wants to lose money, yet there still can be ways that they make sure that they are investing from money that they can afford to lose, so then they try to put systems in place that they are investing rather than gambling.


I would suggest that with bitcoin there can be problems selling at a loss as you suggest, but there are also problems selling at a time that is not of your own choosing, even if you might be in profits.

Any of us who might have had come to bitcoin for an investment timeline of 4-10 years or longer, we might spend several years building up our bitcoin holdings, so we might ultimately be in profits on all of our bitcoin and maybe we have even accumulated a year of our expenses into bitcoin, so we are feeling pretty good about our bitcoin holdings, but if we manage our cashflow badly, we might get ourself into a situation where we have might need 3-4 months of expenses, and maybe our bitcoin is the only thing that we have left, and we end up having to dip into our bitcoin, even though we are in profits and maybe they are in considerable profits, yet if we end up having to sell 3-4 months of our expenses from our bitcoin then maybe that reduces our bitcoin stash to 1/2 or 2/3rds of its previous amount, and maybe once we spend those bitcoin (they are in profits - but we did not choose to do it), yet we might have to spend 6 months or more just building back the emergency funds that we should  have had in the first place and we have to spend another 6 months or more trying to build up our bitcoin holdings, and maybe even we end up having to spend more than a year trying to build our bitcoin holdings back up to where they were, and we cannot get them back up to where they were even after several years of trying to build them back.

So my point, is that it is not ONLY selling at a loss that could cause irreversible damages, and sometimes guys fuck themselves over quite greatly by selling too much BTC too soon, and they are even selling within "dollar profits." but they may well never be able to accumulate back the quantity of BTC that they had prior to their having had sold too much BTC too soon.


Even though it worked out for your guy to start aggressively buying during the pump, it is still problematic to invest in that kind of way, and if he is telling you to wait as a no coiner or low coiner, then that also sounds problematic.

It seems better to invest for a while to build up a stack, and sure if you have at least build up a stack then you have at least some bitcoin so that you have some preparation for UP rather than if you don't have any bitcoin or if you are still wanting more bitcoin but instead of buying you are waiting. That seems like a problematic and even a whimpy approach to bitcoin investing..