Bitcoin Forum

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I really feel that some bitcoin investment advices are obsolete and shouldn't be given anyone again or atleast they should be rephrased to fit the current status and position of bitcoin in today's society.

I will highlight some of the advices and the reasons they should be modified.

1. Invest in Bitcoin with your spare money:
I can say that this advice is not necessary in today's bitcoin world. This advice was only relevant like a decade ago when bitcoin was been seen with alot of skepticism. Some saw bitcoin as  gambling, some saw it as a ponze scheme while others saw it as a bubble the will burst.
In today's bitcoin, we know that if you invest with your spare money you may never make any fortune from bitcoin.

2. Invest what you are able to lose;
I have a question!
Who has ever lost in bitcoin? I do not find this advice pleasant to bitcoin. Although, this is a kind of general advice for assets that are volatile. But with bitcoin having  proven that it can resuscitate after crash, the advice should be rephrased as Invest what you will not be needing in the next few years. It will not be advisable to use the money meant for your childrens school fees for bitcoin. Just have an investment budget from your income that will not negative alter your living state. Then, when you invest for 3yrs to 5yrs duration, there's no how bitcoin will fail you.

Besides I have known people that put their retirement money into bitcoin
And
I have also seen people that have all their savings in bitcoin. What do you have to tell them?

3. DYOR (Do your own research):
This advice should be for altcoin investors. If I may ask, what kind of research is one, especially a newbie expected to make in bitcoin. Are they researching the road map of bitcoin or are they researching the developers behind it? The right thing is to know when to buy. Simply buy low and sell high.

These and some more are bothering me, I decided to let it out so that we will begin to appreciate bitcoin and not to continue seeing it as it was 10 years ago.

Have you forgotten that we do have bear markets that last a while?

Investing with spare money means in case of a bear market, one won't be forced to sell of there bitcoins at a lower market price just because they have to cover other expenses. Same applies to one investing what they can afford to lose. Nothing is obsolete


But Bitcoin can still go x2 to even x7 in a bull market. How many investment options can do that in 3-4 years?

It is your big incompetency if you miss Dollar Cost Averaging DCA for investment advice.

https://dcabtc.com/

No more easily way to invest in Bitcoin than DCA method. You mentioned about spare money so I believe such investors will have good savings, income source so that he/she will be able to apply DCA.

1-2. I partly agree — but these advices being good or bad totally depends on the financial situation of the person receiving the advice. Not all advice are one-size-fits-all.

3. Doesn't need to be altcoins. A person should DYOR on whatever investment he/she's going to make. Even if it's bitcoin, it's still utterly dumb to buy anything that you don't understand.

2 and 3 are not bad but 1 is garbage to be honest.


And not only for Bitcoin investment, but for investment in general, if you do not invest with your spare money, you will either invest with money that you will lack in the short term, or you will go into debt to invest and both options have a high probability of going wrong due to the volatility of Bitcoin.

Advice 1 still stands.

I think these stay. Although risk-tolerance is different from one person to another, if you want to be safe and not lose sleep whatever happens to your investment, invest only an amount that is not intended for something else and not big enough to give you stress when you lose.

Whatever Bitcoin has proven in the past decade, it is never a guarantee of what is to come. It is never even a guarantee that Bitcoin will still be here 10 years from now. That Bitcoin's price grew thousands of fold in the past decade doesn't mean it will x5 in the next decade.

To those people who put their retirement money into bitcoin, I hope they didn't go all-in. To those people who have all their savings in Bitcoin, you're probably doing it wrong.


This classic advice won't age. It will always be relevant not only in terms of investment but also in terms of everything else in life. You should do your own research in choosing which to invest, who to marry, what kind of house to build, what brand of car to buy, what supplement to drink, and so on and so forth.

In terms of Bitcoin, you shouldn't stop researching. News affect it. Government policies affect it. Economics affect it. A hardware wallet suddenly introduces cloud backup and KYC. A mixing service keeps sensitive information.

You say buy low sell high, but how to do it without research?

IMO, these 3 advices still make sense to me

1. Investing spare money doesn't necessarily mean the money you got after you meet all your monthly needs for survival, it is supposed to be the savings part from your total income which means you should save 20 to 30% of your salary and invest on to different assets to get returns in future.

2. I can point hundreds of them who lost their money due to investing on Bitcoin because they invested in a wrong way. Someone saw the growth if bitcoin at the time if bull market so they took loan at high interest rate and bought bitcoin but after few months the price dropped more than half price than their purchase price now how will repay their debt?

3. It's not only about potential growth, what if someone bought Bitcoin but deposited in a fake wallet so they lose all their assets in no time so its important to gain knowledge about bitcoin, how to store them secured for long term, where to buy it, how to avoid scammers while buying.

For me, all three tips are still relevant. You have an OP and some decadent moods about Bitcoin. Please explain why, in our time, it is difficult to make money on the free money that we invest in Bitcoin. At a time when many follow this rule, you begin to deny it. With only one thing, I agree that free money is becoming very small in our time.
In the same way, I can't entirely agree with your following proposals. Although the first and second sound the same to me.

Warren Buffet, a renowned investor was not actually investing what he is able to lose, that was why he became super rich. He was instead investing in early start ups and having large returns. He was using the principle of be greedy when others are scared and be scared when others are greedy

I disagree with this, this advice shouldn't be for altcoin investors as it applies it's to bitcoin too. Making due research is an integral part of crypto for both bitcoin and altcoin investors.

1. You've got a point. But, it's not about making a fortune with Bitcoin but the risk appetite of most people that have seen it. Even if they won't invest with their spare money, this is like having a safe thought of investing in Bitcoin because they can bear the risk. Although no one stops people from investing not just with their spare money and even with their life savings. The whole point of this is to invest what they're willing to invest and that's it.

2. I'll give you an example of who are those people that have lost investing in Bitcoin. Those people that have invested during the hype of it and it's full of positivities and then it seems like not dropping at all. There were few people that have sold their houses and other assets and even took loans of it and bought Bitcoin at the peak not knowingly that the bear market was about to come. And again, this will come back again to the risk appetite of people. That's why this advice should always be taken note that everyone should invest what they can afford to lose.

There have been newbies that do base through the experience of the first bitcoiners. Thus, they think that's more than enough to trust it and not to understand what volatility is. When you say DYOR for Bitcoin, it's not about the entirety of it but have some idea on how volatile it is and as well as the history of it.

I would say instead of going YOLO buying, just keep on accumulating every week. 5-10% of your salary should be invested in Bitcoin.
That would make the most sense to make a sensible buying. You never know when price will go up or down, so focus on just getting more Bits.

You see, this is the opinion of the majority of those who want to buy Bitcoin, they do it exclusively for profit, not for the reason why Bitcoin exists. I don't know how all these people are supposed to get rich if Bitcoin doesn't fulfill its primary function.


Many lost, some less, some more - but not only in the way you imagine. It's not just volatility and the wrong decision when to buy and when to sell, but also countless scams, hacks, forgotten passwords or thrown hard disks and the like. Therefore, people should be warned about all these dangers and risks even today, although it will seem unnecessary to some, I think it's much worse to pretend that such things don't happen.


Someone can research as much as they want, but there are so many lies and deceptions in all of this that you have to be a great expert to find out what is true and what is a lie. The facts are that less than 5% of those who trade cryptocurrencies make a profit, everyone else mostly loses.

Maybe the key word here is "spare money", others though invest fortunes on bitcoin. So obviously a chump change investment will yield you chump change profit.


Everyone in the beginning of their career lost at some some bitcoin. Doesn't mean in trading per se, or investment, maybe is some bitcoin doubler, lost your private keys and others. And then there is the bear market wherein you really need to be mentally tough in order to survived the game.

We have a lot of inexperienced crypto investors, who are investing their money for the first time. These are often very young people, even under the age of 18, who do not have realistic expectations and enough patience and knowledge to succeed in crypto investing.
People who invest in the stock market, Forex and elsewhere usually have a broker who can advise them and warn them about the risks of investing.
Crypto investing should be seen as a very risky investment and approached very seriously and thoroughly.
Given that people here usually invest their money directly, without intermediaries, it is important that they are well informed about the crypto market, analyze market trends in detail and determine concrete investment goals and a clear exit strategy.

No OP I disagree, spare money sounds the same but what I can afford as spare money can be bigger than what others are making per month, what if my spare money begins from 2,000$ per month? If I start buying 2000$, worth of Bitcoin for the next 8 months I will make very good amount of money, so do not judge people because they call money spare money, some people can afford a thousand dollar as spare money.

Just because it's called spare money doesn't mean it's small amount of money.

If you use your entire money to invest in Bitcoin, then which money are you going to use for your personal upkeep? Does that mean anytime you need money, you should sell the Bitcoin you have stocked in your wallet? NO. That is why the advice to invest your spare money in Bitcoin is always good for new investors, so that they can buy Bitcoin with the aim of holding it for a long time.

I agree with this since only those who lose patience and sell their Bitcoins lose money on their Bitcoin investment. However, the advice should be applicable to cryptocurrency investors as well.

This should also be applicable to all, in my opinion, because some new investors think that it is a get-rich-quick scheme where they will just put in their money and it will do 2x in a short period of time, but if they were able to do their research, they would understand how the Bitcoin market works.

Bitcoin doesn't have any serious written or unwritten investment rules; there was no one who wrote those rules, so no one can easily rewrite them, and you should also at least make suggestions for what the new rules should be; maybe some people will also follow the idea. But, honestly, I still find those old rules very relevant in the Bitcoin community. The Bitcoin market is very volatile, and not everyone can patiently withstand the pressure of not selling during a bear market. When some people invest a large amount of money for the short term and perhaps the market did not see bullish movement as they may have speculated, they may forcefully sell and can sell at a loss. That is why the rule "invest what you can afford to lose" is still relevant. Also, some people are borrowing money to invest in Bitcoin; sometimes the market doesn't give them the profit they want at the right time, and they may be faced with the pressure of repaying their loan and interest. Which is why "investing only spear money" is also advised. There are many reasons for it. Investment is meant to be done wisely and not without knowledge of what someone is doing; that's why those common rules exist.

You do have a point and I bet others also understand your point. But I still think that it's still applicable. Maybe not for everyone, but for others, especially newbies. Those three advices you've mentioned are usually being advice to beginners since they are still exploring and starting their Bitcoin journey so it's not a bad thing to follow these advices. But of course, through time and if you learned enough, your ways of investing and thinking may change. Your level of risk may change and you may start investing more on Bitcoin and not just using your extra money. And same goes for the other advices. These advices may not be applicable to you anymore since you've had enough experience and knowledge, but these things can still be useful for others.

If you invest your spare money for 10 years, I don't know if you won't make a fortune after another decade  ;D.  I think you are thinking of other investments where there is a need for a huge amount of capital where this kind of concept is not applicable.


There are lots of people that invested in Bitcoin lost their money.  Though it is not entirely Bitcoin fault but due to the ups and downs of market, and the timing of urgent need for money makes people who invested in Bitcoin to sell their holding at a lost.  Also, there are many Bitcoin investment company that goes bankrupt for some reasons, and investors on that company losses money too. 


Bitcoin market is not smooth sailing and do not continuously go up.  It goes in an up-and-down uptrend pattern and people need to know the reason behind that.  In an investment and in any form DYOR is very important to mitigate risk and assure ourselves that we do the right decision.  One can't have a diamond hand if he is not well-versed in the flow of the Bitcoin market.

You lose bitcoins out of fear and trying to cut your losses when the market corrects in other words people say "Panic". I don't think there is an obsolete method for investment patterns in bitcoin because there is a bullish or bearish market and we can adjust when assets that we have are below the price of capital.

Talking about accuracy and targets it may be true that it is not recommended to use children's education money, savings and other preparations for investment because we do not know that urgent needs can be needed at any time and therefore people must have several sources of income that can be adjusted. But on a long-term scale, placing a child's education security deposit in bitcoin will not hurt you either, because usually education requires more money when children enter university. So that the calculation can be placed on the money we have in bitcoin and the cycle count can be adjusted so that the money can be withdrawn when the child starts entering university.

Of course the steps are more appropriate if you don't put all your money in bitcoin because you have to open several baskets in other investments, so that when the bitcoin period experiences a correction you have other income. The problem is that people don't think long term and bitcoin will also experience a period of decline in the correction phase, so putting all savings and retirement funds in bitcoin is not quite right.

Making investment scale is important and accuracy is also needed to avoid certain conditions, for example conditions that occur outside of predictions and you don't need to sell bitcoins to cover these needs, in other words saving is also important to think about and not always talk about investment.

I don't know why someone needs to set a specific percentage in their investment plan in bitcoin, especially about the amount of budget they need to save. Some people saving 5% - 10% of their salary every month is tough, so I think they are just free to do it any amount as long as they want to do it. I would honestly never set that percentage as a specific budget to invest, I mean inflation has punished many people's savings plans. So when I have it, then at that time I will invest it.

Certainly, the first point is solid advice: you shouldn't invest, not only in Bitcoin but in general, if you don't have the budget to do so. Investing shouldn't put you under financial strain. If you can't afford it, you're better off not taking a risk you can't afford.

The second point is kind of pointless to be bonest, at least that's how I see it. Any amount of money lost would stink, large or small. A loss is a loss. I can afford to lose $2,000, for instance, but that doesn't mean that I wouldn't be mad or disappointed. Moreover, even if we're talking about Bitcoin, gains are still not guaranteed.

You have missed the point. Not investing with your spare money does not mean you should invest all you have. What I mean, anyone still investing in bitcoin today with a spare money is a very big joke. You can budget your and be fine in bitcoin investment.
For instance, if you earn $1000 monthly, after removing your living expenses and emergency fund, you can decide to invest 5 to 10% in bitcoin. This is not a spare money and it is not also a living expense money and neither is it an emergency fund.

When you say spare money, $3 can be the spare money of someone that earns $1000.


You have a point mate. This could be the advice given to newbies to keep them at their toes until they understand the system.  But for someone who is well experienced, the advice is faulty.

  I think about this , it's up to the person who is going to invest because usually people before investing first learn about the risks of loss and so on.

so in my opinion nothing is obsolete, because we invest, we must be prepared to lose money or lose.

I think in this case it's up to the person who will invest because everyone has a different strategy.

Investors need to know How to invest, How much to invest, When to invest, etc.
On how to invest, that's probably why they are advised to DYOR.

In regards to how much to invest, we typically advise people to "invest what they can afford to risk".... *what you can afford to lose* should be reserved for gamblers not Bitcoin investors as it's quite rare to lose all your investment to price fluctuations. The risk is in losing part of your investment or not growing it at all.
Just use the amount of money you wouldn't be too bothered about when things aren't going your way.


Finally, it's important to know when to invest. Invest when you are certain that price will go up & stay above your investment entry price long enough. It's important to know the right time to enter and probably the right time to exit the market, when you need to.  You need someone who can predict the market accurately to guide you on this. Such people are quite very few and are most likely Prophets who depend on our CREATOR for such rare knowledge. You can identify them by their consistency and unwillingness to take the credit for their prediction accuracies. They instead give the Credit to the CREATOR of the Universe.

I think btc is suitable for long-term investments, it is not able to provide much money in a short period of time. So the amount to invest is something everyone should decide on their own. Here, IMHO no research is needed, but the evaluation of income and expenditure rates is a thing better to be performed before buying btc. I think the amount of investment should be something in between "everything you earn" and "only the money you can afford to lose".

I think this advise is true for today also because spare money means that you don't need this amount for your daily expenses and if one put money that is not a spare amount so it will be sometime risky because of the need in householding activities.

Making fortune is necessary but if a person is hardly fulfil his family expenses then there is no need of investment and other thing is that person will only invest what he can afford so it does not matter that with little amount he make his fortune late or with large amount of money he make his fortune soon.

By definition any money that you do not need to sustain your current living expenses is spare money, but how much money each person can spare a month to invest on bitcoin? That is on them, some people may only invest some beer money in it and without a doubt doing such a thing can be very wasteful as the fees will eat a great deal of whatever they are investing on bitcoin, now investing 5% to 10% is a decent amount but it is still spare money in my mind.

All three advice are still valid in my opinion. Regarding Bitcoin, you have an OP and a few decadent emotions. Please elaborate on why it is so challenging to profit from the free money that we invest in Bitcoin now. You start to reject this rule when most others do. I agree that free money is getting far less common in our time, barring one thing.
In a similar vein, I can't fully support your following suggestions. Although to me, the first and second sound alike.

This is where risk management would kick in on which it would really be needing for someone to consider out on how much money that they could afford to lose on their crypto investment.

Risk management is really that highly be needing up to consider on the time you do step your foot into crypto investment.Dont ever have that kind of all-in type of mindset because you would really be finding yourself easily getting be wrecked up by the market considering on how volatility it would be. This is the main importance on spending or investing the money which you can afford to lose is that you wouldnt
really freak out if ever you would see its decreasing in value and since you are really that prepared then you cant really be having those kind of impulsive reactions.

Stick into your plans and be mindful about your each step or decisions you would be making so that you wouldnt really be that ending up on regretting just because you had missed something.

Your modified advice for the second one is basically what the first advice is all about. Isn't "Invest what you don't need for the next few years" the same as "Invest in Bitcoin with your spare money"? Yes, it is, spare money simply means money that you don't need to spend right now, it's like savings or the part of your salary that doesn't go for the household or overall expenses of the month.

And, I don't think that doing research is only to find out if the coin is worth investing in or not, research conducted can also be aimed to find information and knowledge about a particular thing. So if I ask someone to do their research before they invest, it can also mean that I want them to know Bitcoin before they get into it.

Spare money does not mean small money, don't misunderstand the two. Spare money is the money that is not included in your budget for expenses, or money that you budget to invest in bitcoins after you have sorted out other financial problems.

These two are also still very valid, these are tips that never go out of need and everyone needs to always be reminded about it constantly that is why it is always being mentioned. If they are not said, they will be forgotten and people especially new Investors will make mistakes.

No advice is obsolete for a coin that is as volatile as bitcoin. We've experienced long bear markets and grueling drops in price that left some of us here on the verge of suicide and you're telling me that these advices aren't as relevant as they were in the past? That's just stupid man.

Not everyone's as rich or as safe as you when it comes to investments, most of the time these people who're dipping their toes on bitcoin for the first time are those with a lot to lose either financially or whatever. To say that the "invest what you are able to lose" advice is not relevant anymore cause "you haven't heard of people who lost in bitcoin" is just dumb. Have heard of a lot of stories here just this past few years of people who lost so much that they are already contemplating self-harm.

Be more sensitive will ya? Just cause it worked out for you doesn't mean it worked out for everyone. Read a goddamn book.

I keep on saying it and I will continue to say it, always invest your spare money, don't invest what you think will affect you after making investment, you don't have to starve just because you want to invest, have seen some people investing almost all their money in bitcoin, which at the end they won't be feeding well. I will still say it again invest your spare money.

Don't think because everyone have been saying invest in bitcoin and then you will end up selling your propertie and investing in bitcoin, it's really wrong, their is risk in every investment and we all have to always apply risk management, in bitcoin investing any amount you can afford to lose is part of risk management, I won't recommend anyone to invest all their money in bitcoin.

If am introducing bitcoin to a newbie, then I will tell them to go and do more research, they should go on their own to learn about bitcoin, what bitcoin is all about, what's bitcoin aim, and other necessary things I think the person should know. I won't just introduce you to bitcoin and I will ask you to invest immediately, we should all have proper understanding about what bitcoin is all about.

If nobody can actually predict what will happen to Bitcoin market price in future but can only assume about the price, why should someone go ahead and invested all his /her money in bitcoin? For anyone that understand that Bitcoin is volatile in nature  that should be clear to everyone that we should not invested  huge amounts of money that may affect us in bitcoin, so the best is to invest small amounts  of money that will not affect us even anything happens in cryptocurrency industry.


Yes, it is confirmed by early investors and it is also demonstrated by the history of Bitcoin that long-term investors always profit from their Bitcoin investments significantly due to the bull run period that long-term investors to experience. Therefore, holding Bitcoin for a long period of time, at least 5 years, hardly makes us to lose in our Bitcoin investment but likely to give us profits, and that is why we need to invest only money we may not have the uses in the nearest future.


Even in terms of Bitcoin, not just with regard to alternative coins, our personal research is crucial because it can provide us with sufficient proof of Bitcoin and help us determine how much trust to place in our Bitcoin investment. In fact, personal research can help us determine how much will be sweet to invest in Bitcoin.

I don't buy this idea that Bitcoin is today fundamentally different, that more hodlers, higher price and higher trade volumes mean that Bitcoin can't crash. Whether Bitcoin can crash or not depends only on the determination of holders. And no one is researching that, no one is conducting surveys, people cherry-pick statements of high-profile investors like Saylor to make an argument that Bitcoin is now "solid". But volatility is as high as in the early days.

I believe that investing spare money and investing what one can afford to lose are basically the same thing because if it's spare money, it means you can afford to lose it, and if you can't afford to lose it, it's not spare money.
Investing what you won't need in the next few years isn't a bad alternative, but it's also somewhat risky because there's no guarantee that Bitcoin will always recover and always grow, so at some point it might not be better or the same in a few years.
DYOR isn't bad either, since at least basic understanding of what you're putting your money into is required, and so is personal financial responsibility.

Spare money is as good as investing what we are able to lose. And in the OP's thoughts, Investing into bitcoin with funds that'll be required anytime soon by the investor can lead to losses in bitcoin. Hence, investing in bitcoin for quick profits has nothing to do with spare cash. Like you defined spare cash, if a person invests into bitcoin the money they are able to lose they'll gain enough profits; that should be the reason behind the number 2 advise. Because, they'll consider the investment as a lost money and don't remember to check up on it for a while, given time the money will accumulate to a substantial amount of profits.

Correct, investing in bitcoin money that we cannot afford to lose will make holding our position way harder and could force us to sell at the worst possible time, meaning that taking such a risk is simply not worth it, and this means the guideline of not investing more than what we can afford to lose should still be followed, now depending on the expenses of each person what we can afford to lose is different for each one of us, however regardless of the amount we can invest in bitcoin this is a better alternative than to just hold our fiat or to put it in a bank.

If your plan is too make a fortune from Bitcoin investment, your spare money can still get you there, I am sorry to say this OP, your first point is utterly stupidity, when you are asked to invest your spare money it's for your own good.

A bear market can take up to 2 and a half years and we don't know how long this bear market will last, imagine this takes 3 long years and you invest money that you will need after a year, won't you end up selling your Bitcoin for loss because you need the money after a year? This is why using spare money that you won't be needing in the short or long term is the best.

You can still make a lot with spare money investing in Bitcoin, the longer the bear market the better, if you can successfully invest 300$ in Bitcoin per month, in twelve months that is 3600$ and in three years you would have invested 10,800$, and since you are taking advantage of the bear market you will still make some good amount of money, now imagine if Bitcoin does a 6x in a bull market.

Are you serious? Anyone who bought in at above the current price is at a loss. "You don't lose if you don't sell" is nonsense and nothing but a coping mechanism.



What you're proposing is not much different from "don't invest more than you can afford to lose", the only difference is that you seem to guarantee that BTC will keep breaking the new ATH every "few" years. Nobody can predict what will happen in the next few years, and there are good arguments out there for the next cycle to not reach the previous ATH.
I'm sure you wouldn't be giving such guarantees outside of an anonymous forum if you could face legal consequences for giving bad investment advice.