Bitcoin Forum

hi!

im a total newbie, just being convinced by max Kaiser to buy some bitcoin

what i already did:

-set up and synchronized client
-encrypted and backed up wallet
-got mtgox account


what i want to ask:

- is it ok to invest 25% of my portfolio? to much? to little?
- should i wait for a correction after such a crazy rally?

My (unofficial) advice would be to invest only what you're willing to lose. In future, bitcoin will mostly likely be worth a helluvalot (no, $70 per BTC is certainly nowhere even galactically close, no matter how pricey it may seem now), or nothing/next to nothing, IMHO.

Another option is to buy bitcoin, register with BTC-e, send some BTC thither and speculate on litecoin too, adjusting the weighting of one's litecoin portfolio with the seismic shifting of the exchange rate (i.e. buy LTC low and sell high, that age-old strategy). This allows one to diversify and sell bitcoin without returning to fiat.

If you've already got PMs in your portfolio, I think you're already set to "risk" bitcoin, but still, only play with what you can afford to lose... just in case. I'm willing to take that risk, especially now, when my dollar value of crypto holdings is still firmly in the "loose change" category - I love Bitcoin, though.

Well if you are a 'trader' type like Max there are btc denominated stocks and even options that can be bought. You might want to spread your btc investment around much like your fiat portfolio.

1. If you cannot make your own investment decisions, you should not be investing.
2. Your decision. You could have bought at $65 :)

thank you for reply!

I'm already over 50% in metals.
after cyprus decided my fiat is not safe, and want to move some into smth other than PM's to be alble to liquify it faster.
 25% its not what I can afford to lose, but in fiat it can be stolen by goverment.
I think I will not wait and buy @ market when my fiat will arrive at mtgox.

Investing in Bitcoin can mean a lot of things, you either just buy some at a trusted exchange and wait for them to appreciate (a lot).
Or you are one of the entrepreneurs that actually earns Bitcoin because of the hype, and then you're safe whether it appreciates or crashes.

Be creative.

My portfolio is currently 5/6 PMs and 1/6 BTC in dollar terms, but that was not a deliberate choice. It is just a reflection of the fact that PMs have been static for two years whilst BTC has been rather frisky ;-)
I would say if you are starting out, then 10% in BTC is probably about right. It is the classic example of a high risk high reward investment.
I wouldn't bother trying to buy the dips. Just buy and forget.

About a year ago I started from 5% of BTC. Now I regret I didn't buy more as the most of my "low risk" assets were burnt on Cyprus bank account.

.10 for a risk bullish move is a solid number, but just to beat that horse: assume you'll lose it and forget the dips.

There's always Spain.

Purchase a fixed amount every week (or every day).  Don't try to time the market if you think Bitcoin is going to hang around for a while.  Nobody likes buying at the top, but if you dollar cost average you won't feel like a douche when the price drops the day after you invested the entire amount...

There's also the option to invest your bitcoin in dividend paying stocks and bonds.

If you are only investing to hold bitcoin then you are only buying in to a bubble. Go away, were trying to build something better here.

25% seems a bit much, but I'm sure that there are people investing more here  ;D

It's likely there will be a correction at some point. But it's hard to predict whether it will happen now, or if it will happen at $150 and correct down to $100.

Steady growth of new fools coming in...not same rate of growth of new REAL transactions which is what values a currency:

https://bitcointalk.org/index.php?topic=158111.0

You should ignore me. I won't be replying.

Yes you should. Hopefully you can lookup the Quantity Theory of Money. Set V = 0, what happens to GDP?

Ah sh8t I said I wouldn't reply. F$ck I lied.

The depends of how much risk you want to take.  My opion is that Bitcoin are never going to go down.  Now there maybe a sell off and it will back off, then that would be a good time to buy.  However, we just has one of those, so it would be up to you to jump in.

I quoted you in this other thread:

https://bitcointalk.org/index.php?topic=158111.msg1676853#msg1676853

I'd say investing in Bitcoins would still high risk. But high risk has high rewards if it works out. It's such a new concept, it could crash, it could revolutionize the monetary world. I'd suppose at this point it would be better than penny stocks, but hell, ya never know.  :P

Im not saying it is a bubble, im saying it will become one if more and more money flows in to bitcoin, without having any use for it at all.

this is a vary interesting thread, just what i was debating with a friend here for last couple days. thanks all for the valuable input!

My view is that investing in Bitcoin means that you are adding something of value. Buying BTC is a way of investing. However without spending those coins you are not getting the best out of your investment. If you want your investment to grow further... try to add more value the the network, either by being a consumer, a merchant or miner. There are other ways too: http://bitcoin.org/en/support-bitcoin

I coulden't agree with you more.  :) 

Great simple way of saying it! I completely agree..

In regards of just the price, I think is a great investment long term.. even if tomorrow will be $50, in a year it will be much more than $100..

So, I didn't see a huge jump in transactions, yet, the BTC price is up again. Care to explain us ohh so smart economist how is it that this happen?
Lol I'm just playing with you... Don't reply, go read an economy book instead :)

I recommend you to invest in it how much you can lose  :)

I am not scared of bears. The price will go up eventually so long as BitCoins has a use as digital currency.