Re: Balancing Financial security and Bitcoin Accumulation

You're right only a persons discretional income should be invested in Bitcoin and not the other way round , investing an entire life savings in Bitcoin all at once is financial recklessness which could also lead to financial discomforts. When a person invest his entire savings in Bitcoin,at that point he's now financially vulnerable because he's empty without any funds to sort out his Bills and other of his necessary needs. Since he is a long term investor,there is no points pouring all of his funds at once in Bitcoin of which is very wrong from the starts. A smart thinking investor would only invest in Bitcoin appropriately without overdoing it or stepping out of his financial limits.

I agree with you, one of the most important things in Bitcoin investment is to invest with financial balance, if you invest aggressively, an investor will panic very easily, because when the market is down, that person will not only suffer from mental stress, but he may also make any wrong decision due to excessive panic. But if he continuously invests in Bitcoin through DCA, he will never panic during volatility, because he is increasing his Bitcoin holding at an average price through continuous purchases, so volatility will never scare him too much. So, before investing, you need to know about these volatility issues, and instead of deciding to invest aggressively, deposit Bitcoin in DCA through prudent income, and keep emergency funds ready to protect the investment in the long term.

I don't really understand what you mean by financial balance but it's most important when accumulating Bitcoin it should be done using only our discretionary income, accumulating aggressively is not bad over doing without considering the level of your discretionary is what makes it bad, and again an investor whose purpose to accumulate Bitcoin and hodl for long using his discretionary income don't need to panic when ever there is a decline in price instead he should use such opportunity to stack more bitcoin knowing that the price will increase again.

I agree with your statement here. The point is weather an investor is investing aggressively or not, just make sure you’re investing with your discretionary income and not the money meant to take care of your other financial obligations. An investor who chooses to be consistent in accumulating bitcoin either on a daily, weekly or monthly basis with his discretionary income is basically term as an aggressive buyer and nothing is wrong with that in as much as it does not affect his other financial obligations whereby he’s now finding it difficult to pay his bills and by so doing he tends to his bitcoin investment for his emergency funds then In that case such aggressiveness is not good.

When can we say aggressive buying? When we invest with our full or some less amount of our discretionary income, then we can call him an aggressive investor. But always buying so aggressively is not right at all. If you always buy aggressively, then you can put your saved Bitcoin at risk. For a new person, investing 5% to 25% of his discretionary income will be the right decision and it is very good to maintain the continuity of investment. For example, if you invest with your full amount, then if you face any kind of financial crisis, then your only option is an emergency fund. And if you invest 5% to 25% of your discretionary income, then you will have some money left and if you face any kind of financial crisis, then you can deal with that crisis with it.