I basically agree with this statement. Especially seeing Bitcoin investment as a long-term accumulation, not chasing short-term trading and investing according to one's discretionary income increases the chances of a person achieving success. I also agree with you that in Bitcoin investment, investor must first understand financial capacity. Just because income is coming from a job or business, that entire income does not become available for investment. The income will come , the necessary expenses reduced fund . And if a back up fund is not formed, then he has to keep some money there too, and then accumulate bitcoin with the extra fund . Because the biggest advantage of long-term investment is not just holding Bitcoin it is creating the financial ability to hold. If you buy Bitcoin with money that you will need in a few weeks or months, then no matter how much you call yourself a long-term investor, real life may not allow you to follow that plan. Ultimately, Bitcoin investment is not a race where you have to show profit every day. It is a process where you gradually build a Bitcoin position according to your financial capacity and give enough time so that the long-term effect of your financial condition positively.

It's not always the best to have a fixed amount, there may be occasions whereby expenses are high, resulting in little or no discretionary income for the said period and if the person's operates with a fixed amount, he might try to smart his way and ignore some expenses in order to meet up with the fixed amount, this might affect him negatively and he may struggle to cope with his finances within the said period which can be described as overaggressiveness.

It's best investment amount is tailored to available discretionary income, when you have more money available, you can increase it and when you've less, you invest lesser and when you've none, you wait for the next time discretionary income becomes available to continue investing. This doesn't mean you're not consistent, as long as you're investing whenever you've discretionary income available, you're being consistent.

It seems to me that the more important skill is cashflow management rather than investing experience, yet the point is still taken that newbies can have a variety of skills, knowledge and experience by the time they first start buying bitcoin, and yeah some of the skills will be more important than others, and many times normal people can identify various areas that they might need additional practice, and while in bitcoin they can adjust their position size (weekly DCA or other amount) to their comfort level and as they are learning and becoming more comfortable, then they can increase their investment size in accordance with their becoming more comfortable.

To illustrate the point, I frequently will use an example of a guy who knows that he has $100 per week that he could use to buy bitcoin,  yet he purposefully chooses to start out with $30 per week while he is becoming more comfortable with bitcoin and/or with factors around his cashflow management.

In reality the financial situation of people does not move in straight line. Because there are lots of factors that can affect their financial state, since there are certain changes happening in their life like income fluctuation, seasonal cost and their family obligation.

This is the reason why many people like the flexibility what DCA could do for them, because despite of some challenges came it help people to remain consistent with their investment. Also they should invest when there's discretionary income appears and better not to force anything like putting same amount in every period while they are struggling.

There's no doubt that emergency is helpful to us investors, but it does not eliminate the risk that's why people still need flexibility. Then this is when we could see that DCA is truly a great strategy to use, because it naturally adapts on real time financial situation of each people or investor, instead of assuming that they can put the same figures every week or month.

I agree with this point. In real life, no one financial situation is the same every month. Today's income is good, a few months later, income may decrease. Also family responsibilities may increase, medical expenses may come, and a bonus or extra income may come in some month. So it is not right to make a Bitcoin investment plan in such a way that income and expenses will remain the same for the next years.

But this is why backup funds are even more important. If you have to stop buying Bitcoin when income or expenses change, or worse, sell existing Bitcoin, then the financial setup was not very strong. Backup funds give the investor some flexibility. In case of a minor mistake, decrease in income or unexpected expense, the investor gets the opportunity to manage the situation without immediately depending on the Bitcoin holding .


A common misunderstanding needs to be cleared. There is no such rule that DCA means buying exactly $100 every particular day . DCA can be manual, automatic, the amount can change, and if income is irregular, the buying time can also change. So, a freelancer or contract worker does not have to have a fixed salary to accumulate Bitcoin. Suppose someone gets $150 discretionary income after paying expenses this month. He might buy $50 or $100 Bitcoin. The next month, only $20 is available due to extra expenses, so he can buy $20 or buy nothing depending on the situation. The next month, he gets $300 discretionary income. He can buy more. This did not make his investment plan fail. Rather, he is planning in line with his real cashflow.

It is true that emergency or backup funds do not eliminate risk. There is no guarantee that any backup fund will be so big that it will cover all possible problems in life. But the purpose of backup funds is not to completely remove risk. The purpose is to create a financial situation so that you do not have to sell Bitcoin due to common unexpected expenses.

DCA itself does not automatically adapt to your financial situation. The investor has to adapt to it. And it would not be right to consider DCA as a complete risk management system. DCA is basically a method of accumulating Bitcoin. Backup funds, expense management, discretionary income, and position sizing are separate issues. When these work together, the system becomes strong .

If an investor regularly invests a certain portion of his income in Bitcoin through DCA, he also keeps an emergency fund that can handle unexpected medical expenses, or any unavoidable expenses. Then, if a sudden expense arises, he will not have to sell Bitcoin. As a result, his long-term investment plan can remain intact. Emergency fund is a safety net in investment planning. In the case of volatile assets like Bitcoin, if the market declines during an emergency, the need to sell comes together, then the temporary decline in value can turn into a real loss. Even if the size of the emergency fund is sufficient, if someone invests more money in DCA than he can afford, other financial goals may be affected. Therefore, the amount of DCA should also be consistent with the person's overall financial plan. Another important point is that the emergency fund money and the investment money should not be combined. Having a separate liquid fund in advance, rather than relying on Bitcoin for emergency needs, allows the investor to make decisions somewhat independently of market fluctuations. It is also not right to assume that the amount of the emergency fund will be the same for everyone. A salaried employee, a person with irregular income and a businessman do not all have the same financial risk. Similarly, the amount of family responsibilities and expenses may also be different. Creating a financial structure where even if an emergency situation arises, the investor does not have to panic and sell assets. And in normal circumstances, he can continue his long-term investment plan with discipline.

A person that’s earning $1000 and has $200 left after settling his basic needs, that does not mean the remaining $200 should be invested in Bitcoin. What about emergency fund? Reserve fund?.
They’re are important if you want your accumulation to be sustainable and not be forced to sell off because of unexpected expenses. So It’s not even whether the money came from one job or plenty source. The main thing folks should consider is how much money they can comfortably afford to use after taking care of needs and financial responsibilities.

I agree with you we do need an emergency fund and a reserve fund. It's best to set aside money for both an emergency fund and a reserve fund before buying BTC If we've set aside money for both an emergency fund and an emergency fund, we'll likely not sell our BTC If an emergency arises, we can use the money for our own needs, making long-term btc investments more comfortable

Investing in btc from any source is fine, as long as we're comfortable using it and have an emergency fund and a reserve fund. We must be prepared for the risks of investing in btc However, it's also better to keep adding to our emergency fund and reserve fund. When we have a lot of BTC, we'll be comfortable investing in BTC long-term, and even during dca

Anyone in this situation need to work hard to expand his finances because his basic needs is taking 80% of his income and that is on the high side. This does not mean he cannot invest in bitcoin but it simply means he may not be able to set aside some of the funds you mentioned. With a discretionary income of $200, he can invest $100 to $150 into bitcoin and then use the balance as protective funds and he will still be good. My only concern is that if his basic needs cover 80% of his income, it means he will need to keep somewhere around 10% to 20% for emergencies and that bring us back to where he need to work harder to earn money because such person has huge responsibilities.