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.
If to invest aggressively will make you panic when there's a dip, it means that you shouldn't invest aggressively but use the amount of money from your discretionary income that will keep your mind at rest if there's a dip or not for your weekly DCA . It's better to use small amount to buy gradually every week 4-10 years and above and be consistent with it than buying with an amount that will make you panic and sell before your desired time.
Buying aggressively is good when you have the money to do so, because it will help you increase your bitcoin portfolio in a fast pace but let it be within your discretionary income, if you invest buy aggressively with money that's beyond your discretionary income, you are gambling and will sell your bitcoin at loss, especially when the price of bitcoin is below your entry point.
I mean the basic purpose of investment is to get something going (interest) and one mustn't force their way especially when you feel the market is at advantage to you and you think you desperately need to buy big since the price is in favour because of maybe a dip in price, but doing that will just give you restlessness since it's out of discretionary income and anything that's out of your comfort zone in terms of investment is actually a really bad idea and going slow and steady would be the best option just as advice but the issue with most persons is that they lack to have patience and control which can make due to decision making results.
You're right, the sole purpose of starting a bitcoin investment is to make profits and offcourse there are process that must be followed step by step to actualize that purpose as results in bitcoin doesn't happens overnight but in years specifically. When it comes to accumulating of bitcoin,it should only be done only within our discretional income and not outside of it. We re also expected to buy when our discretional income is ready but buying & investing outside of our discretional income is over-stretching oneself financially which is inappropriate. Investing within our financial limits and not overdoing it goes a long way and would bring about a positive impact on our bitcoin investment.
We invest in bitcoin with having a mindset of having profit, but that should only be achieved if we decide to invest and hold for a long term period and profit isn’t a guarantee for us in a short period of time, that is when the process of holding on to your bitcoin for a long term period and consistent accumulation is quite considerable to help and get enough bitcoin stashed in our portfolio. Investing little by little when we have a discretionary income is good enough to keep buying bitcoin in an affordable price index with appreciating DCA method to try and buy more bitcoin in a more convenient way.
You are right,investing in Bitcoin is a long-term investment for the financial development of your wealth and future life.At this time, it is a proven fact that the longer you can invest regularly, the more profit you can get. You should invest in Bitcoin from your discretionary income through a regular DCA method for 4 to 10 years. This is because Bitcoin goes through many price ups and downs in 4 years. But when the time is 10 years or closer, the real gains are made. For example, at the end of 2017, the price of Bitcoin was $13,850.40, but a year later, at the end of 2018, it fell to $3,747.39. Since then, prices have been increasing and this trend has continued until 2021. It took about 8 years from 2014 to 2021 to reach the highest price increase. Those who invested patiently in Bitcoin during this time or regularly invested in Bitcoin through the DCA method are the ones who have made real profits today. They focused on buying Bitcoin regularly, without paying attention to price fluctuations in the middle and that's why they were successful. But here's another thing not everyone wants to invest for the long term.Because many are older. They want to make short-term investments and get quick profits. I would say that those between the ages of 25 and 35 should set a goal of investing in Bitcoin for at least 10 years. And for those who are at the end of their careers or want to have a security fund for retirement, investing in Bitcoin can also be the most profitable. You may get limited profits if you invest in any other business, but if you invest regularly in Bitcoin, your profits can be many times higher. Below is a list of Bitcoin prices over the past 10 years:
Price in 2014 End of year : $321.00
Price in 2015 End of year : $430.08
Price in 2016 End of year : $965.31
Price in 2017 End of year : $13,850.40
Price in 2018 End of year : $3,747.39
Price in 2019 End of year : $7,183.88
Price in 2020 End of year : $28,972.40
Price in 2021 End of year : $46,197.31
Price in 2022 End of year : $16,531.31
Price in 2023 End of year : $42,278.32
Price in 2024 End of year : $93,586.33
Current Price: $118,209.01Source:https://charts.bitbo.io/price/