Quote from: Bitcoin Smith on August 19, 2025, 09:08:21 PM

Quote from: bitzizzix on August 19, 2025, 08:04:15 PM

~The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.

Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.

To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things (gold, stocks) that they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.

This diversification idea comes off as presumptuous and even a little bit retarded, and your example of a $250 per month investment budget does not help to suggest that it is of a large enough size to warrant diversification.

Frequently if a person is brand new to investing, he would not need to diversify beyond bitcoin and cash... $250 per month is $3k per year, and so maybe we could presume that the person has around a $30k income, so that would be 10% of their income invested into bitcoin.

Now if the person already has some cash reserves, then he could invest straight into bitcoin, yet usually there would be a need to get the bitcoin and the back up funds to 3 months of expenses.. So if the person only has $3k per year, then $1,500 into back up funds and $1500 into bitcoin might not be enough to constitute 3 monthsd of expenses.. A person with a $30k per year might have around $1,500 per month in expenses... so investing $4,500 into an emergency fund and $4,500 into bitcoin might take a couple of years, yet you are prescribing some kind of diversification (really dilution) into stocks and gold.. which does not make much sense.

Even though you have bitcoin as part of your user name, you don't sound too passionate about bitcoin, which might cause some of us to consider that you might not really understand bitcoin very well because otherwise why would you be proclaiming diversification as if it were to be important. A person could invest close to a year of income and/or expenses into bitcoin before it might start to make some sense to diversify, and surely diversification for the mere sake of it makes little sense... since diversification is something used to preserve wealth rather than to grow it, so anyone who is getting into bitcoin might well be in the wealth growing stage.

There could be some folks coming into bitcoin and they already have other investments, so then for them there could be a question about if they reallocate some of their already existing investments into bitcoin or to continue to invest into the already existing investments and/or to ONLY invest new money into bitcoin, and if we go back to your $250 per month budget, that is not a lot to work with since it is only about $60 per week, which hardly makes sense to split into parts unless it is merely involving the building of back up funds.

Quote from: Sonia_123 on Today at 12:02:14 AM

Quote from: yixichloro2xx on August 19, 2025, 11:05:26 PM

[edited out]

Diversification is good, but you don't diversify at your early stage of bitcoin accumulation until you have reached your overaccumulation stage and even if you have to diversifying, you don't touch your capital but part of profit so that you don't end up starting from the beginning as a no coiner or low coiner which the price of bitcoin must have gone higher that what you started with, which can set your bitcoin investment backward.

As a bitcoin investor, you are supposed to have an existing investment and not solely relying on bitcoin as your only source of income for survival, since bitcoin is not guaranteed, that will help you to be stable in mind and not always focus on the price of bitcoins ups and downs with fear, since we all know that bitcoin is risky, and the risk involved will also give you the courage to accumulate and hold in a more longer term more than the period you intend to.

There is no bright line in terms of when some guys might start to consider that diversification might start to make sense, but it usually would start to make sense prior to reaching overaccumulation status.

I have frequently thought that getting our bitcoin investment to cover 1 year of expenses might be a line in which diversification might start to make sense, yet some guys want to start to diversify earlier than that and some are o.k. waiting until a later point in time. There is no real wrong answer, except maybe it does not make muuch if any sense to be diversifying in the very early stages of investing, since that dilutes your investment, and surely any of us trying to build up our bitcoin investment realize that it can take a long time to just get to 3-6 months or even longer than that of our expenses invested into bitcoin, so for example if our monthly expenses are somewhere in the ballpark of $1,500 per month, but we are ONLY investing around $250 per month, it would take us 18 months just to get to the point of having had invested 3 months of our expenses into bitcoin.

Surely bitcoin's price might go up and/or down and change value during that time, so one thing is how much we have put into bitcoin and another thing is watching the extent to which what we had put in is going up or down in value.. and even though we might not get too concerned about whether we are in profits or not we might realize that if we are investing steady in bitcoin for 4 years, then maybe at that point our costs per BTC may well be around the same as the 200-WMA.. and the BTC spot price tends to be above the 200-WMA, yet not all of the time... .and BTC's price is also not guaranteed to continue to go up, even though bitcoin has a strong investment thesis, perhaps amongst the best of places, if not the best place, to put our time, energy and value.