Despite its volatile nature, Bitcoin surely will always appreciate and thus, investing up to a half of Income is a wise one with future mindset.
I doubt if someone that invests half of his income in bitcoin can be able to hold it on long-term basis. No matter how much a person earns, investing half of his income is not advisable because, the bigger someone's income is, the more responsibility he has and this is just basic. Life has a way of aligning everyone to the class of same income earners.
I still think no matter anything an investor with long term goal should never touch or temper with his or her investment, that is why we should have our emergency funds and reserve funds to always take care of unforseen circumstances. Someone who knows the potential of Bitcoin and understands the return Bitcoin can give over years of holding will never be moved by any massive movement of the market I mean that is a pure temptation that a determined investor should overcome because if you try selling because of increase in the market you will definitely sell next time when there will be another increase and by so doing you are gradually becoming a trader and you will be use to that at some point.
selling when you haven't gotten to overaccumulation stage is not advisable because you will be distracted in a way you can not imagine
I think that stable source of income contributes to a large extent to what we can do when it comes to bitcoin accumulation. Also knowing what you want is another factor. When your emergency funds are properly accumulated, your bitcoin stash would be safe too. Some people that result into trading do so because they are either investing beyond their financial capacity or they focus more on the charts. Again, when someone is introduced into bitcoin by a Trader, he tends to have a trader's mindset than an investor's mindset.
Investing up to half of your income it’s not actually ideal , in as much you consider the bigger picture of Bitcoin in the future , you should also understand it’s a long term investment, so you are adviced to invest with your discretionary income, so that it won’t affect you unless you have other business and investment that can fetch you some money , if not investing half of your income may affect your accumulation journey or properly result to selling when you don’t have much money with you .
It depends on your responsibilities and the level of your income too, if you're someone that doesn't have much responsibilities and lets say when you divide your income it will still be enough for you to satisfy your domestic needs and other emergency needs too, I don't think you should have a rethink of investing with half of your income although what matters in bitcoin investment is, if you'll be pressure free after investing with half of your income,
You should not forget that humans by default upgrades to every level of life they find themselves. When you feel your income is big enough to take care of your responsibilities with less than half of the salary, good. But this also comes with increased amount of unknown side dependers and also calls for an upgrade in your way of life. One is not to live a lowly lifestyle because he's investing in bitcoin. So it's not very advisable to invest up to half of your income in bitcoin. How much would you put into your emergency funds and your back up funds? Or do you see life as an express or bed of roses.
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Yes i agree with you, if Everyone’s strategy is shaped by their goals and risk tolerance. DCA really takes the emotion out of investing, which is crucial in a volatile market like crypto. Whether someone holds or takes profit along the way, what matters is sticking to a real plan that makes sense for them. No one-size-fits-all in this space and that’s what makes it so interesting.
And from my observations, methods like DCA are already more widely used by investors, so we can conclude that it's a method that's more suitable for all groups, although some may still use methods other than the one you mentioned. But we can all see how everyone's path, where their own personal fit with a strategy, will continue to be sought in order to invest in Bitcoin more comfortably and without burdening themselves as long-term investors.
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We can only advise and never compulsory to adhere to whatever advice given. Bitcoin investment is personal even though everyone may tend to have a common goal of making a profit, the approach to this end sometimes differ. Lump-sum investment strategy is good for contract workers who also wish to rule their finances. Even though they buy in lumps, they have high level of financial management plans because they are also aware that it could be long enough before their next possible income. These set of investors tend to earn big periodically and this is why they also tend to have a very large discretionary piece which it's percentage could still amount to a lump-sum buys. They make their long-term plans but planning for at least, twice their possible hope for their next contract.
Investors who Buy the dips are usually opportunistic buyers, who capitalise on their notion of dips meeting income. This set of investors can also hold for long-term because they are patiently holding and fulfilled with the price of bitcoin as at the dip. However, such investors fall into bitcoin trading unknowingly or knowingly when market looks milky. Another challenge in buying the Dip is that a person can intend buying to hold, and due to the Dip price, he aggressively buys beyond his capacity which exposes the entire bitcoin to premature sales in an emergency situation.
DCA approach remains the widely acceptable way of approaching the long-term holding of bitcoin. This is because you choose your DCA allocation which would be very stress-free to you while also putting your emergency funds into consideration. So it's better to accumulate gradually but steadily than to crash out of bitcoin investment due to bad cashflow management.
As a bitcoin investor, the only income you need to invest with is just your discretionary income and nothing much.
This is very correct. An investor who sincerely buys for a long term goal should only invest in bitcoin with a fraction of his discretionary income only, after adding to his emergency funds and back up funds.
A lot of folks tend to get themselves worked up over little things that shouldn’t be a worry to them as long as bitcoin investment is concerned, you need just a discretionary income to invest with or to even continue sustaining your ongoing bitcoin investment. Knowing fully well that bitcoin investment is a long term investment and for an investor whose initial strategy is focused on the long term goal of consistently accumulating and hodl, you don’t need to get yourself involved in some kind of dramas that doesn’t really worth it, all you need do is to be able to figure out your discretionary income and invest with it.
Once a person sincerely plans for long term, then he would understand that there's no need to rush or continuously aggressively accumulate bitcoin. This will reduce the pressure to buy beyond your capacity at anytime or the pressure to invest with your emergency funds just because of a dip. These are things that a person needs to discipline himself against doing and consistently focus on that amount set aside for his DCA approach.
The DCA method of investment makes it even more flexible for you to invest with without getting to worry about how much you should invest with, rather you only have to figure out what’s your discretionary income for the week or month depending on how your income flows after you might have been able to sort out your other financial obligations, the amount left with you should go for your discretionary income and that’s just what you need to invest with or sustain your seemingly ongoing bitcoin investment and gradually build up your portfolio for the long term goal.
Yeah sure, sorting out your financial responsibilities is very important, but also noted that it won't also be advisable to invest your entire discretionary income into income since that's also the source of your emergency funds and back up funds.
You are absolutely right, aggressiveness itself is a negative energy that brings in bad results, which can damage an individual lives.
Aggressiveness is not a negative force or does not lead to negative results in investments. What is aggressive investing? How does it affect your investments? How to invest aggressively? And how much aggressiveness is good? It is very important for an investor to know these before becoming aggressive in investing. Being aggressive in the right way in investing can help you achieve your goals quickly and will benefit you.
Aggressive investing brings negative results for those who are more aggressive than they can handle and do not adopt the right strategy. Even aggressive investing is harmful for those who cannot determine the level of aggressiveness considering their own position and discretionary income. There is no harm in being aggressive in investing in the right way, but if you are aggressive in investing in the wrong way, you are likely to lose money and may be forced to break the holding.
Surely, there's no harm investing aggressively when you have the resources to do so. But this must be done under high level financial management system to avoid a resultant backslide which could expose your bitcoin stash to possible premature sales. Before aggressively accumulating bitcoin suddenly after periods of DCAing, first consider if you've actually had a pay raise or a reduced responsibility. One of this has to be in place to be able to successfully buy aggressively without a fall back. Instead of buying aggressively because of dips without proper backup plans, then maintaining your DCA approach remains the best anyone can do.