Although you are 100% correct that investment does not guarantee a return (even when investing for longer time periods), investors may find that short-term trading is basically speculative in nature and most people prefer to avoid executing speculative trades. Consider extending your investment horizon to 8 years (versus one full business cycle) in order to minimize the risks you take by investing at the proper time. A disciplined approach to DCA and investing over time rather than trying to "time" the market will help reduce the tension created by trying to "time" a trade. Ultimately, the goal of investing is not primarily about making fast profits, but rather, making steady, gradual increases in the value of the investments over their life cycle.

That's true, dca method is very accommodating to everyone that is ready to invest in bitcoin including newbies that is just starting up, it enable an investor to buy even when the price is still very high at your convenient time. However, with the dca method of purchasing bitcoin I see no reason anyone should be complaining of not having a sufficient funds to invest when he can be accumulating bit by bit till he hit up his accumulation target. Above all, dca reduces pressure of meeting up to standard when you are not up to do, dca enhance comfort even at your accumulation process  and also dca method  is the best you can tell a friend If you really want to tell someone about bitcoin.

I think that you are giving more priority to your emergency funds rather than your bitcoin investment. Why will you put a higher percentage of your discretionary income into your emergency funds and after one year, you still share your discretionary income into three parts and put one part into your emergency funds again. It means that your emergency funds will be way higher than your bitcoin investment which shouldn't be so.

There is no need piling up too much fiat in the name of emergency funds because emergency may come or not. As a brand new investor without any form of discretionary income in the beginning should split his discretionary income into three equal parts. Which is 33.3% for his regular DCA overtime, 33.3% to build his emergency funds and 33.3% for his discretionary consumption. This is because you are investing in a long-term and you will definitely set up your backup funds before the end of one circle but you continue growing your bitcoin investment for 4-10 years and above.

Thanks for the correction Sim_card, as human we never can predict that rate of emergency that might happen or the severity of it, but we are taking a step to try to avert these unpredictable situations that might affect our Bitcoin investment. Prior to my previous reply, as long as folk or newbie have accumulated a suitable emergency funds while accumulating Bitcoin, they can reduce the percentage allocation to emergency funds and add it up to their Bitcoin investment, thereby upping their DCA.

That is why as an investor, you don't need any investors to inform you when to start keeping your reserve funds, for any ugly situation you might find yourself with your accumulating processes, every investors or newbies should understand those things that serve as backup strategies or plans should never be overlooked or take as a minor thing that can never be helpful to you in future, i have been following the all the parts in Bitcoin that will prevent me from pulling out my already accumulatd Bitcoin in a hurry just to save the situation at hand.

That is also the reason why we need the basic knowledge about Bitcoin investment because someone with these knowledge will never wait for advise to start keeping their reserve funds or emergency funds because they will know it is what they are suppose to do as an investor so waiting for someone to inform you is an error. Immediately we start purchasing and holding we ought to start making plans and arrangements for our emergency funds because they are also among the tool that will bring a smooth running investment.

Trick to getting good information is that by time you want to make a decision you are not informed by your own judgement. Only conviction can stop investor from panic selling during crash.
But we should be talking about reserve fund and emergency fund. While great piece of your wealth can be set aside in Bitcoin for future, emergency fund for day to day expenses should probably be kept in less risky, more stable form. If market plummets 30% for example, at same time as you have emergency, then you are in trouble because you have to dip into your reserve and sell at loss, defeating purpose of being long term investor. Point is to create vault, where you never have to touch your Bitcoin regardless of life circumstances.

There is no reason to wait at all in order to start investing in bitcoin.  A person can start right away, as soon as they determine that they have discretionary funds.


Why do you keep bringing up 3-6 months?  What importance is that?  Sure, in the beginning there may be adapting, yet if a person is investing in bitcoin then it is good to have an investment timeline that is 4-10 years or more... and yeah, sure in the beginning the newbie might be getting used to investing, so if he is investing something like every week, then he may well have to get used to dedicating a certain amount of money going into bitcoin, whether it is $100 per week, $10 per week or some other amount.


Sure.  It is possible that a guy who is brand new to investing, he might determine to dedicate part of his discretionary income to investing, another part to building up his back up funds and another part to discretionary consumption, and yeah, if he is starting out with absolutely no back up funds, then he likely would be investing in bitcoin and building his bitcoin back up funds at the same time, and so depending on how much he is putting in to each, it could take a long time, even a year or more to build both of them up so that he had put in the equivalent of 3 months expenses into bitcoin and 3 months of expenses into his back up funds (ie emergency funds). and yeah, if he had dipped into his back up funds at various points along the way, he likely would have to spend some time to rebuilding those back up funds to keep them at a level that he considers to be reasonable for his own circumstances.. whether that is 3 months of his expenses or some other amount is largely based on his personal financial and psychological circumstances.. yet there could be some personal preferences thrown in the mix too.. He might consider that he is quite intent on building up his bitcoin stash size, yet once his bitcoin stash size gets to be 1-2 years or more of his expenses, he might decide to put more emphasis on keeping even larger amounts of cash, cash equivalents and even alternative investments that he considers to be part of his backup funds and fund sources that he would tap into prior to any tapping into his bitcoin.  


o.k.  Sure.. if a guy depletes his back up funds, then he might have to put priority on building it up first, otherwise, he might not have enough funds to protect his bitcoin from being tapped into at a time that was not of his choosing.  So surely any time that there is considerable loss of income or increases in expenses, then back up funds might get tapped into and even depleted, yet we should be trying to put practices in place to protect our bitcoin and to get our income back so that we can build back up our back up funds.

Sure. Investing in bitcoin involves knowing how to put first things first at times that it matters most which gives you the ability effectively manage any kind of situation you find yourself in while staying invested in bitcoin.

Along your investment journey, there are times when you will have a lot of money and at such times, investing might seems too easy but times will also come when you might have very little. Times will also come when you have other pressing needs that are as relevant as your investment and you have to also make an opportunity cost in terms of what you have to forgo to continue investing and wether or not you're going to relax on your investment for a moment just so you can keep other aspect of your life going. Through it all, your emergency fund protects you and keep you invested such that you never get to a point where you have to sell your asset and even if based on loosing a job or experiencing uncertainty that might slow your finances down might look like a big challenge, you will still have to reply on your emergency fund while you navigate throughout that season.

This is the main reason why Bitcoin investors are adviced to put down emergency and reserve funds that are big enough to sustain you and your investment for a period of three months or more, because shitty things like this do happens most times in your investment journey, but having the means to combat it without getting unscathed is the game changer.
That's why I sees those that downplay the importance emergency and reserve funds as an unserious people, unless they are rich.