If a person is investing into bitcoin, they can invest up to 100% of their discretionary income, but if they make a mistake then they are being too aggressive. Therefore it is good to hold back.
If a person decides to invest somewhere between 5% and 25% of their income into bitcoin, then they still cannot go over 100% of their discretionary income, so presumptively anyone investing 5% to 25% of his income into bitcoin is working within his discretionary income.
It seems pretty whimpy to only invests 5% to 25% of your discretionary income. .but guys can do what they like, even whimpy things.
Many folks struggle to be able to save/invest 10% of their income. so presumptively they are saving/investing from their discretionary income, and someone who saves/invests 10% of his income might be saving/investing 60% to 80% of his discretionary income... perhaps.
Sometimes we might need to talk about an example. Maybe a guy makes $2,000 a month, and he has around $1,000 a month in basic expenses, and then he might have another $300 a month in discretionary expenses, so then he might have $700 a month that is left, and he might put half of that into his bitcoin investment around $350 and the other half of $350 into his back up funds. In that case he is investing only 17.5% of his income into bitcoin, but he is investing 35% of his discretionary income, and perhaps once his emergency funds are up to a high enough amount, then he might invest $700 per month into bitcoin, which is 70% of his discretionary income, but only 35% of his regular income (which might be a real hard goal to reach since many folks struggle to invest/save 10% of their income).
I think your example makes it very clear that a person can play in Bitcoin and reserves at the same time. Aggressive investing is all too often mixed up with being careless but the reality is that you may wish to go all in on Bitcoin but you must have that buffer there. And when you lack an emergency fund, you will be tempted to sell at the wrong time thus reversing all the gains that you have made. I also agree that percentages appear to be different when you are measuring in terms of income or discretionary income. What appears to be a modest fraction of total income may actually be a large fraction of what remains after expenditure, so the method must be appropriate to the actual circumstances of the person.
Over time now, I've got to learn on so many things regarding investment, we should not be influenced by our decision base on what others are doing , instead we should sit more tight to discover on how we could also adopt a strategy that may best fit in for our investment and then work on it until we made it a reality, many have been so entangled by what others are doing and they don't seem to understand what is ahead of them or expected of them to do at some point while investing.
That is why before we can invest, we have to learn more and more, understand the nature of the markets and have the ability to hold and make right decisions that could contribute more to our interest than being on losses, we may think all these don't count, but at last, they do, since the decisions made by us today will always be a reflection of what we see tomorrow, because there is no magic in what we do, but we have to be intended for making the right choice investing.
If someone wants to invest, then it is imperative that they have an idea about Bitcoin. But don't take too much time to gain this knowledge. Because the content of Bitcoin is very vast. There is no end to learning here. With time, new things are coming, people are researching and working on them. So if you spend too much time learning all this, then many more opportunities to invest in Bitcoin will be missed. You must have a basic idea about Bitcoin and its security.
You have talked about understanding the nature of the Bitcoin market, in fact, no one can say exactly when the price of Bitcoin will increase or decrease and how much it will decrease. However, after a long time, the price of Bitcoin has increased many times, we can understand this by looking at the statistics of the past. And it is clear to us that if one can hold Bitcoin for a long time, he can get a lot of profit from Bitcoin. The easiest way to invest in Bitcoin for a long time is to follow the DCA and invest with discretionary income. In addition, if create an emergency fund reserve fund, that can solve any strategic problem without having to sell Bitcoin... In fact, instead of using Bitcoin as trading or gambling, we should see it as a means of future security for ourselves and our families.
Without knowing that their situation is unique, people easily find themselves lost in imitating others. A good foundation of education is good, but as you pointed out, it must not keep one stationary indefinitely as the market continues to move. The trick is to begin with a level of familiarity that will allow you to remain safe and continue learning whilst already having something to learn. Holding long term with DCA and only spending discretionary funds makes it a lot easier to avoid panic decisions and the presence of an emergency fund does not compel you to sell when things get tough.