Post
Topic
Board Nigeria (Naija)
Re: Balancing Financial security and Bitcoin Accumulation
by
Barikui1
on 28/07/2025, 08:48:38 UTC
There is nothing wrong with a guy who might choose to set aside other funds for buying the dip.  That is not really called diversification, even though it is employing more than one method for accumulating bitcoin that might result in accumulating more cash if the BTC price does not dip.

Let''s say that we have a guy with a $50k per year income, and he is investing $200 per week into bitcoin.  That would be $10k per year and that would be right around 25% of the guys income going into bitcoin investment.  Maybe if he already had been buying bitcoin for a full year, then he has $10k worth of bitcoin and whatever  amount that his bitcoin holdings had appreciated during the time that he had been accumulating it.  There are websites that we can look up the numbers to make sure our hypothetical is realistic... so maybe this guy has 0.14507 BTC after one year of $200 per week.

So then how much is the raise? Did he go from $50k to $60k or maybe from $50k to $55k?  The extra amount or some proportion of the extra amount could be set aside for buying the dip, as you mentioned. I am not sure if there is any compelling case to be made for doing it or not doing it (except that in the case that I described, the guy is already allocating a pretty high percentage of his income to bitcoin investing.. and so hopefully he has already established an emergency fund, or maybe he might need to spend some of his income or the bonus money to shore up his emergency funds).  No matter the case, bitcoin investors can decide these kinds of balances of their income and their extra income.

I am now clear on the subject. I initially thought that even if you invest in different ways, it is considered as diversification of assets. However, the balance between income and investment that you mentioned is really very important. Because if there is no balance, if there is no understanding about fund management, then there is a possibility of any loss in the future. And the most important thing that I think is to create a proper reserve fund and emergency fund of investing  in Bitcoin.
The earlier you understand the in this crypto space, their is no such thing as diversification, because no other asset comes close to Bitcoin in reliability, so if you wish to diversify because you don't feel too ok of all your finances invested in Bitcoin, you can invest into real estate or land, where the problem usually comes from when diversification is talked of is that for a new Investor that hasn't accumulated much, he shouldn't think of going that route because it's a distraction he can't afford at the beginning of his accumulation journey, but if he has accumulated more than 50% and he wish to diversify into real estate or land because he doesn't feels 100% safe in Bitcoin, it's not that bad in my own opinion, where it's terrible bad when diversifying is moving from Bitcoin to an alt or shit coin.