It's kind of weird when an investor thinks he can completely know everything about bitcoin which to me is impossible,it is even worse if he starts waiting until he knows everything about bitcoin before he can start investing. Somehow it is creepy for a person to venture into Bitcoin without understanding how it works because by so doing he may start investing wrongly with the mindset that he is doing the right thing when he's not. My points is, trying to have too much knowledge about bitcoin isn't necessary rather what is important is understanding how Bitcoin works and how to invest rightly.
That is, general knowledge about Bitcoin is definitely required. If you have general knowledge about Bitcoin, I think it will never be a problem to start investing, but if someone delays investing to gain deeper knowledge, then he is definitely making a mistake. It is very important to know the basic concepts clearly, because without this, you will not be able to implement the investment properly. You have to master the necessary concepts and start investing, but you cannot waste time waiting to gain additional knowledge.
I agree the idea that general knowledge suffices to start but I would also include that the way you use that knowledge is equally important. To illustrate this point, it is one thing to know that Bitcoin is decentralised but another to comprehend why self-custody is safer than leaving funds on exchanges is what actually secures your money. The most effective is to begin with some of the basics, when you have them in order, then the investment process will lead you in further studies. When you can only study and not act, you will miss opportunities and when you can only act and not learn you may end up losing. It is the ratio of the two that will define a powerful Bitcoin investor.
Yes, regarding this, I think your assumption could be right or wrong, especially regarding using reserve funds to invest in Bitcoin. In my opinion, using reserve funds to invest in Bitcoin is certainly possible. Basically, reserve funds are allocated for planned expenses, such as home renovations and other planned expenses. So, essentially, reserve funds are somewhat flexible. So, perhaps that's why you said you could use reserve funds to invest in Bitcoin. However, I'm still not very confident about using reserve funds to invest in Bitcoin. While it's true that reserve funds are quite flexible and aren't used for emergencies, I personally feel more comfortable investing using only discretionary funds. Because discretionary funds are funds that will not be used for any other purpose.
I don’t think he’s suggesting investing in bitcoin with your reserve funds but rather in some cases that an investor might feel there’s an opportunity to buy he can use money from the reserve fund to buy and later he can try to balance his funds when he receives his income. Reserve funds can be used for such things cause they’re backup funds, which keeps you from going into debt, they’re not restricted as emergency funds which are designed for specific kind of unexpected expenses like job loss, medical bills etc.
There are situations one can find himself in and you’ll see that taking money from reserve to invest isn’t such a bad idea so long as there’s a plan to replace it. Assuming there’s a dip and you have no discretionary available but you have some reserves and emergency funds available, one can decide that instead of waiting for when the income comes to be able to get discretionary he can use his reserve and replace it after, in order not to miss that buy opportunity.
Disclaimer!: The best way of investing is using your Discretionary money, but if you’re willing and able making use of reserve fund occasionally to increase your accumulation not such a bad idea.
The important thing in this case is to separate the role of either type of fund. Emergency funds must not be touched, that is a survival fund. The reserve funds on the other hand are more of a cushion to the planned yet non urgent expenses hence flexible. I have watched people effectively use reserves to dip, and then replenish it on the following paycheck. The risk is that you forget to replenish it and an budgeted expense just appears. Yes it can work, but only when you are disciplined enough to think of it as a temporary loan to yourself.
In simple words, if someone wants to invest for a long term or buy in dip and hold, then the total income must be divided into 3 parts. 50% daily expenses + bills and 20% Emergency & Reserve fund, that is, first complete the emergency, then create a reserve and the remaining 30% can be invested and this is the safest long-term investment plan. Now if you want, set up a DCA strategy with your profile for dip buying or long-term holding. If you keep it like this, it will be clear which money is for survival, which is as a buffer and which is for real investment. There are also many other strategies for investment, but this is the one I like the most and I consider it the safest.