Bitcoin Forum

Yes, the pool strategy of investment doesn't refer to the game of pool, but a method in which a group of persons can come together to agree on combining their funds to invest in a business or acquire asset that is evenly shared or divided among themselves.

I was surfing through my Instagram and saw a clip of an interview, on how an Arab family of 4 brothers, married their wives, live a big house, pool their funds together, invest in an asset and share the profit evenly among themselves. This way, they all had exotic cars and property and the wives and their mom only had to take care of the home while the brothers go do their work.
 This is one way wealth has been replicated for generations according to the  Arab man who granted the interview and I found this revelation quite intelligent and very helpful.

We live currently off the idea of a P2P system, in which  among many other reasons is the fact that it has created a kind of trust between people who on a normal day don't know each other or would want to have anything to do with them on the grounds of race, ethnicity, tribal sentiments, religious beliefs or wealth class.

A group of friends or brothers or relatives or colleagues can come together, buy some crypto asset, possibly BTC because of its credibility and then share the profit after the time agreed upon is due. They could also invest in Altcoins for quick profits on short duration.

What do you think? Let's discuss!

 Link source:

https://www.tribevest.com/blog/how-to-pool-money-together-to-invest-in-5-simple-steps

What works for them might not be worked for all, trust is key in any investment or business purpose. I learned of partnerships in school as well as limited liability companies and all but I'm not sure if I want to pool resources together with anyone but just have my business and enjoy a quiet life without stressing out about if anyone's attitude will ruin the business out or not.

Partnership is what you mean. In business we have seen so many business that started with partnership but I wouldn't advice anyone to go into partnership to invest in bitcoin because in whose wallet will the coins be in. Remember bitcoin should be store in a noncustodial wallet and which of these partners will have the private keys.

If the person who have the private keys run away how will you arrest him that he is with your coins,when this can not be investigated by the government because the only way one can have his right in any business that he partner with his friend if he is deprived of his right. Is by going to the police but in bitcoin no evidence unlike a physical investment where there are so many documents to proof. I am not cool with this idea. Human is greedy in nature.

This story has no connection with coming together and adding funds together to buy Bitcoin. When it comes to Bitcoin investment, there is no limit to what one can buy. Whatever little money you have, you can buy what you can afford and call it your own. Adding money together to buy Bitcoin will even be more confusing, and some issues might arise in the future.
Bitcoin profit is not calculated based on how many people add money to purchase it; it's calculated by the amount you hold, which is how much you can earn in every little bull run.
 
Let me say, for instance:
Four brothers who have $1,000, $700, $800, and $900, respectively, add the money together, which will sum up about $3400, and use the entire fund to purchase Bitcoin. This Bitcoin will always be shared based on the individual's amount invested; it is no different from buying it and holding it individually without even going into that kind of stress.
 
This kind of strategy will only be beneficial in a family where they have been issued general funds that should be split among themselves. If they are not in a hurry to use that money, they can come together and agree on how to invest that money in Bitcoin, from which they will all benefit if there is a profit added to it, and if there is any loss recorded, it will also be shared among themselves.
 
About families living together, both husband and wife and kids, in a big family house, to some point I don't like the idea, but that depends on what people believe. sha If you don't look at society today and the way things are moving and how families are going into conflicts with one another, you will see that it's best for married people to stay far away from each other's families, especially where more than one family is involved. You never know where issues will come from, and when they do, you never know who you are to support or who not to support, whether you will choose your wife's statement over that of your own brother's, and so on. To avoid some kind of drama, it will be peaceful for them to stay in separate homes, provided that each of them can afford to foot their bills. Family is more peaceful in distance. I don't know about the Arabic home, but I talk based on personal experience here in my local.

This is literally what I believe investment banks does basically. Not just a few people getting together, but tens of thousands, in some cases even millions of people put their money into them, and they end up using those billions and billions of dollars into making big moves which shapes the market, allows them to basically manipulate it which results with them making more profit. Is there a pool there? Yeap, is there a lot of people investing with that pooled money? Definitely, are they making money from it? They surely do. As you can see it is an idea that works but it does require a ton of money and also requires a lot of powerful people at the top that knows what to do with it. It can work, but not with us gathering couple thousand from a few people.

According to a widely accept believe, pooling resources together for any investment has a high potential and chances of success to an individual financial strength as it avails the required level of capital for expansion. Addition to having different experienced entrepreneurs coming together to share ideas on how to tackle present and future challenges makes it's all easier to face compared to when all of that is coming from one head.

But having a partnership business investment doesn't mean success is sure. Partnership demands people of like minds dedicated to the vision mutually, and humans are unpredictable and can change at anytime should there arise a discrepancy of interest and such change could have a devastating effect in decision making towards the investment. In otherwords, the pooling strategy of investment for wealth multiplication can be stalled when the investors ain't of a uniformed mind and vision, it could be disastrous.

This could really be that applicable but this would be only good if you do make out dealings with family members but still having the chance when it comes to trusts issues considering that we are talking about money

on here on which there are really people who cant really be that trusted specially to those people who do been holding up the funds. For traditional investment then it might be applicable and possible since everything could really be having that kind of agreement or signed or notarized basing up on what had been agreed upon, doesnt matter if you are family or total random person who do share up on the same interest or concept in mind about pooled investment. The main argument on which people would really be that realizing is on how they would be making up decisions if ever this one be applied on crypto investment?
Who would be the ones will really be holding those invested amounts considering that you would be holding up for long term? This is why i would say that this isnt applicable on crypto space
but rather into those traditional ones which it is really that realistic.

Basically I do not really agree with the use of this pattern in terms of investment, the group method of combining funds to achieve large investments in crypto or bitcoin is not a good strategy, because we can independently engage in bitcoin investment even if we rely on small capital. The consequence of pooling money in a business or investment with a group carries a level of risk that can make the group distrust one another.

How far can you guarantee this will work normally and why not involve yourself in investing independently in bitcoins. I think an idea like this is not quite right and we will be in trouble when the price reaches a sharp decline in the market. In the end one group of friends would suggest selling bitcoins instead of waiting for a sharper decline and eventually the investment went even more chaotic because one of the members was worried about the of bitcoins.

Regardless of how you can build confidence in building capital with a group of friends, I don't think it's the best way and there are still other ways to get to the usual investing ability stage.

Hmm got it the idea of the pool strategy seems to be good, but do you really think it can be practical in social life because no one trusts nobody most of the time, for the sake of consideration let's suppose we've got the right people they trust each other everyone has a different mindset, different ideology so how they can agree on a particular thing this is also impractical most of the times.

If we just apply it to random people who don know each other they just come up with the same idea and they are investing money in an asset that they like will also be called pooling as Bitcoin, But its not like we all are investing the money on the same time as others and profit shares are also dependent on our own decisions. So what you are saying is the basic form and Bitcoin and other digital assets are the Modernize form of Pooling what do you say?

This kind of strategy had been practiced for a long time.  though they have different approach, they are the same method like pooling of funds.  Cooperatives acts this way but of course cooperatives distribution is very different than the one stated by @OP.  Another example is partnership and corporation.  So this kind of strategy is not new.


Of course, the main factor here is trust especially when the action is directly controlled by an individual. The story stated by @OP got no issue because the participants are all within the family and it is also possible that they have a strong bond.

It's not an unknown strategy. A lot of people grew money from this technique but in the same note I don't really recommend this to everyone cause first off, you have to have people you trust. Plus points if you have friends, and God only knows how many of us here have gone long enough outside to get friends we'd trust with our money lol. Kidding aside though, Another reason why I don't suggest this to everyone is the mere fact that you're entrusting someone else with your money, meaning you have someone else to blame when shit hits the fan and your investment tanks. It's better to take full responsibility over your money so you have full power and accountability over it. Otherwise if you're not quick to anger and you're willing to share the profit or the loss with other people, then by all means take the pooling method.

The whole point of joint investments is to surpass an entry barrier that no single partner can surpass alone. One person is not rich enough to start a business or buy a property, but 4 partners together have enough funds to do so.

But it makes no sense to pool Bitcoin investments. You can buy any amount of BTC you want, even $1. There's no upsides and only downsides to this.

Did you mean: mutual fund company? Yes, if you have the ability to manage finances and have credibility and a good portfolio, maybe you can make one. But I don't agree if a mutual fund company will be used for bitcoin investment, in my opinion the risk will be very large. It may be best if your mutual fund company makes investments like any other, usually investing its money in the stock or bond markets. Maybe you can use some of those profits to buy bitcoins and hold them. It's probably a lot safer and has a lower risk

Mutual fund companies will usually distribute dividends periodically, if you invest in bitcoin you will have a hard time when you have to distribute dividends, the price of bitcoin is too volatile and when the market is bad maybe you need to hold bitcoin longer and it can go up for 2 or 3 years, then What are you doing? You will distribute dividends when conditions like this occur?

I would suggest it is better if you will create a joint company and then you should invest your funds in a safer sector. Even though the dividend yield is not that big, if you can pay dividends regularly every month, then your company's investors will have more confidence.

Traditional business and investing in bitcoin are completely different. When you work and do business as a team, everything becomes easier because each person will have their own strengths and will support each other to make things go more smoothly. But for bitcoin investment, you just need to buy and hold, why need the cooperation and capital contribution of many people? Who will keep the private key, and what happens if the person holding the team's assets runs away? This is a bad idea.

I think it's rubbish.

Such a 'system' only makes sense in order to access an investment that you would not be able to access individually. For example, if the minimum to invest in something is $5,000 and you only have $1,000, it makes sense for you to get together with four others to be able to invest. But at the end of the day the return is the same. If you invest in something that has an average return of 10%, whether you do it alone or with more people, starting with $1,000, after a year on average you will have $1,100 and investing with more people can have more disadvantages than advantages, especially when it comes to making decisions, such as when to sell. The more people involved, the more disadvantages.

That right, the power of collaboration cannot be underestimated in investing efforts and ultimately enhancing their overall risk management strategy. But it's true as you said, here, it is very important to address concerns regarding private key storage, especially if the person holding the team's assets runs away due to mishandling of the assets.

People can do this only if there is some sort of contractual agreement that everyone signs. Else, I wouldn't let them get my money without that contract so that I'm not screwed if worse comes to worst. We've seen a lot of collaborations involving money with close relatives and friends, and sometimes it does not go as planned. The person in charge of the pool of investments either reasons out and runs with the money, or simply just disappears. On paper, pooling money for better returns seems like a good idea, but you need to protect yourself against people who are out to get your funds and not work with you to riches.

I thought you're the only one wrong about this pool investment, but the writer who wrote the article was wrong too.

It's not make sense why you need to use pool strategy when the investment is served for public. Let's say you have $1,000 to invest, why you're not invest by yourself, choose the asset by yourself, set the target and risk by yourself?

It's different if you want to invest in private company, you need to cooperate with the business and other investors.

Trust needs to be considered in investing by combining several people's funds into one. If some people say they are all brothers, they can trust each other to invest by pooling their funds, buying Bitcoin regularly, and holding it for the long term. It is a good thing if you can trust each other and the investment should be made by people who can trust each other.

The capital collected will be even bigger but apart from that, they must also understand that the risks will also be bigger. In terms of investing in Bitcoin, they must know the risks where price fluctuations will continue to occur so that is the biggest risk they have to face. That would be great if they could all stay calm when those price fluctuations come. Otherwise, it would only lead to divisions between them.

It would be even better if they decide to invest in Bitcoin and make purchases of Bitcoin regularly so that the amount of Bitcoin will be even bigger. And when the price of Bitcoin starts to increase until it can make a peak price again, that means the profit will be even bigger and of course, the potential for profit sharing will also be even bigger.

If i am not wrong you are refferring to same video i have watched in which those brothers are sharing their money as, one brother is doctor, another is construction worker, one is engineer and all of them has gathered their money and bought cars, house etc. And their women are living a luxury life in the house by become housewives. If that video is same then those brothers did not invested their money by combining them they used the money to buy things by sharing each other money (by combining).

And believe me we Muslims prefer this way, like when i came to know about "getting out of house" is a thing when you have to leave you parent and house after turning 18, i was like what! because we as Muslims loved to take care of our parents and wants to live with them so that we could take care of them as they did when we were child. (i could share hundred of stories like these which are 100% true).

We as Muslims loved to pay Black Tax, if you know what it is, a topic is already created here before you could look into it by searching it on any search engine (like here on BTT or on Google). 

We should live together like a family and help each other, but you have to be careful because if you are living together then your wives might not like that idea so convince you wives and if you are not married then ask you finance about the idea of living together. Because this is the main thing that would become a reason for fight but in most cases the problem is solved. Well, you have to be careful while making such relation because you have to make this relation for the sharing or love only not because by living together we could buy anything because such thoughts and idea will only become a reason of fight.

For this strategy to work depends on the family background. A rifty family can not practicalize this idea because of what they believe in. By the way, this idea is not suitable for any digital investment such as crypto currency (bitcoin to be precise). A bitcoin require a wallet and keys which should be kept in a safe place. In such situation, who will take possession of the wallet? Or should they all have access to the wallet? For the former, one person must definitely be in control of the wallet and he may temper with the funds if care is not taken. If the answer to latter is yes then the security of the wallet is threaten already.

Both online and offline, partnership business is faced with some challenges that not everyone can manage. It has created unending enmity among family and relatives who attempt to practice it. It might work for some family thou if it is physical investment but I don't subscribe to such idea if it has to do with bitcoin.

Just like @Nwada001 said, family is best when they live apart. It is perfect when everyone invest on what personally suit them.

The pool strategy you are describing could help for building a "brick and mortar" business, but it doesn't make sense in the financial world.
Not in the crypto financial world, at least. I know that such investment pool schemes exist for decades, but they are mostly used to buy stocks or real estate properties.
What's the point of gathering the money of a bunch of people in order to buy a financial asset(like Bitcoin), when they all could individually buy the same asset? I'm not a big fan of such "pool businesses" because sooner or later conflicts will start and the pool will collapse.
I know about family businesses, that are destroyed because the family members had a scandal and started lawsuits against each other. 

The main problem is that we must have people we can fully trust to be invited to work together in growing the common economy including in investment and the like. Working with other people I think is quite difficult. because building trust with other people is quite difficult. but the example reported by the OP is 4 siblings from Arab countries. and I know that brotherhood in Arabia is very close so they can build mutual trust well. Maybe if my brother is willing to do it with me. so I can think of this idea too.

But I will only do it in certain fields. like working together to buy a large land property. Because land property can be distributed evenly after purchase. even land ownership documents can also be broken down into several names. so in this investment field maybe I think this idea is pretty good. but for other investments like not suitable.

This is not the case in the cryptocurrency market where everyone is able to buy a fraction of what they can afford. You are missing the big picture here.

It is truly rather absurd at best. Pooling a cryptocurrency investment fund would complicate the whole idea and process. The profit/loss portion sharing for each member and especially the way how to keep the coin. Theoretically, you can use a multi-signature address, but on the first hand, there is nothing to gain by pooling the funds. I even could not think of any positive effect. If what you mean is someone just depositing money and another person handling the investment, the pooling strategy of investment is the wrong term.

Cryptocurrencies like Bitcoin make it even more difficult to talk to your loved ones about money. The concerns raised by the wallet/keys analogy, the potential security breach, and the resulting lack of confidence are all valid. But hear me out, the great thing about Bitcoin is that anybody may have their own wallet and keys because of the way it's built. To protect against a single person absconding with the funds or a single key being compromised, we may set up multisig wallets that require more than one key to authorise a transaction. Even if there are difficulties specific to firms run in partnerships, there are also opportunities, risks, and benefits that are not available to sole proprietorships. Even among families, it's important to have clear ground rules and written contracts in place to avoid animosity and disputes. It's the twenty-first century; you may expect some strangeness.

Sometimes it all depends on families how organized they are and how corporative the brothers is, there some families that are envious of themselves whereby they won't even think of doing a collective investment or team together to produce a yielding results from whatever investment they have ventured into.
So, for this Arab family, there's love and unity and this may not be that common with africans as I believe they are too jealous of themselves, such family may find it very difficulty to growth in terms of wealth creations.

From my way of reasoning, wealth creation doesn't come from diversifying your investment, diversifying investment sometimes can be likens to be a way of wealth preservation whereby you are securing wealth from being in the risk of collapse or losing values. A targeted investment is enough for for wealth creation.

Be opened to pair and to connect to what feels good for you in people but do not be relaxed and eager to emulate what works for others because what works for others might be a disappointment to you.

I would describe this topic "Pool strategy for wealth multiplication" as a pond or a structural layout that demands the tactical ideologies and the technicalities of spreading your investment wings to reliances for a financial exploit in an investment sector.

Walking and working with those on the same mission as you has a highily potentialities to fit you possess your possessions on that that field.

When two or more person's  are conjoined against lesser numbers of persons, there is a potential of conquering but not numbers that counts but individual capabilities and abilities.

So, you don't have to look in counting of numbers to succeed in your business or cooperative affairs and it is not reliable as a sole business because trust issues do exist.
You only align in a partnership when you don't have enough capital to kickstart in your investment as long as you have your investment skills.
Corporative investment is accompanied to have internal tussle which is tantamount to breakdown businesses.

Benefits for partnership are >>
1) Low capital raised per person for easy establishment
2) Collective ideas are layed
3) Larger Capital is achieved by contributions.
4) Magnetizes connections
5) Large wings spread.

Benefits of a sole business>>>
1) Simple management
2) Trust free
3) Privacy is obtained
4) Confidence operations
5) Personal decisions.

Summary>>>  If you think you are fit in to build and handle an investment of your own, it's best way for you but if you think you don't, only then you need to be partnered.

I was thinking if the upbringing of the children in a family could also determine if they can agree to such an idea, in the first instance.
It is not obvious that these brothers were raised to love and respect each other, for them to first live together and invest together.

I believe the brothers in my story made a targeted investment and it is the profit they get from the investment, that is used to acquire property and share evenly among themselves.

This would be only possible if all of your brothers are really that having their own source of income or having those funds which are intended for investment but if not? Then it cant really be possible on

having this kind of set-up.I agree on some mentions on here that trust would really be a big problem on this specially when it comes to money and investment because we do know that everyone could
really changed up on point on the time that they would be dividing their sharings. Its really that truly possible that this thing could be done but this would be only good on having those agreements
in between siblings but also could be done on other people but it would really be that hard to be applied on this method because just like i said where trust and confidence would be the main issue on this one.

If possible then i would really be that much preferred on having that sole proprietorship on which it do really lessen out the headache on having that corporation style which it isnt really that my liking.

Correct most times just as you said they solely depends on their parents and how they handle their families, there are lots of parents (mother and father) who weren't able to bend their children to live and love each others, especially to be respectful and adhesive to whatever their elderly ones instruct them in the family.

If they were are able to corporate during the investment period then I must say such parents are good people for putting efforts to unite their family despite having living together they were able to maintain the investment to maturity and yet was shared evenly between them.

In investing in crypto and stocks a combination of investments is definitely not a good thing to do. Because in this type of investment, large funds are not required to enter it. But if it is in the investment property of land or buildings such as apartments and the like, you need more funds to enter this type of investment. Then the pooling of capital can clearly be done. The bottom line is combining capital for investment is only more logical if it is done for investments that require large capital. or can not be done with small capital.

That is very hard to meet, I mean how could you get together with bunch of people and pool your money together and trust them? It would be pretty difficult and I believe that there will be some troubles. This can't really be done perfectly when we are talking about just the regular people and only a few of them getting together, it's just not that easy to handle and we need to arrange something totally different.

It is not going to be much of a big deal but it also can't be done any differently. I believe that we can't really have anything major, but it can't also be done in a way that would be different neither. I hope that we can move on and do something much bigger, and we can't really change it that much.

No it's different, In Arab culture there is no paper agreement or signing a contracts. It's just words between families and relatives. They put their money all together, use only credit card for their expenses for all the person inside the house. So the only thing they hold for that agreement is their words, blood, and relationship. So altogether they pool their money.

The same thing happened in crypto space, People gathered their funds in one project or account and they trade it as if they think their fund is enough to be whale, or to affect the volatility of an asset.

This goes against the spirit of bitcoin, now it is true that if you can find a group of reliable people to do this strategy you could profit from it, however that is a huge if, where are you going to find those people? How are you going to make sure one of them does not run with the money of everyone else? And in the case this happens how do you avoid legal consequences for yourself as this was your whole idea? At least to me this looks like a lot of work for almost no gain and a risk that is too high.

I will not partake in such centralized business for a decentralized cryptocurrency especially for bitcoin. Building a family business because of lack of fund which will make the gathering of resources essential, needful and important for such huge project to grow. But bitcoin or other cryptocurrency doesn't require such huge fund before investing so what is the point to create future rift when everyone would have lived peacefully if they didn't pull resources together. Running a partnership business is suppose to be in black and white on the conditions of coming together, operation and contribution, liabilities including losses and profit, not just by the affinity sake alone without terms and conditions written out.

Pooling funds together for investment can have potential benefits like bigger capital so running the business will be smooth and can get into bigger sale but I want point of that it is Too complicated since we need to trust the partners which you know it is not under the control of you as an individual.

Do you know someone who can trust you with your life and also interested in your business as a partner then you got to be lucky and no need to hesitate while it is not going to happen for everyone since we are living a life among selfish people.

Well there are some things you need to keep in mind while pooling funds with others

• Establishing clear agreements, and documenting responsibilities
• Maintaining open communication are vital to avoid conflicts and misunderstandings
• Each participant in the pool must have a clear understanding of their financial responsibility and risk appetite
• Decision-making Process is cruel and decides how it should be based on

I just wonder, what difference does it really make if you are investing with a group or doing it individually? Especially when it comes to Bitcoin or cryptocurrencies where you can buy with anything you have as long as it is more than $10, and even if there are 4 people combining $10 each to buy $40 worth of the asset or everyone buy $10 worth of it individually, when the price of the asset goes up, everyone will still have the same profit value.

So in my opinion, it is not really worth it, and someone should rather make their investment on their own instead of doing it with a group of people. If I was to decide, I would never do it with a group unless I knew that I can't reach the investment threshold on my own since I don't have enough money.

I do not advise a group of relatives and friends to get together and buy high-risk assets, including Bitcoin. You start investing from a low-risk asset, medium to high, and not the other way around.The reason for this is that all types of investment entail risks that may not be borne by everyone, and thus cause social problems among the family. It is better to divide the investment so that it is in different sectors and in varying proportions so that high-risk investments do not exceed 30% to 50% in the worst case, with a good diversification of investments and asking specialized people to reduce risks and maximize profits. Such partnerships are always the problem in the mechanism of providing liquidity when someone needs it in making decisions.

I have always though that it is a really bad idea to mix friends and family with money, because as soon as money gets involved money takes the center stage, and if something goes wrong, and we need to be honest a lot of things can go wrong when investing in bitcoin or any other asset, not only you run the risk of losing money but also losing your good relationship with your family and friends, and it is simply not worth it to lose something so precious over some money.

I also think that what you say is not wrong at all from the facts that I have seen in the environment around me, because there are many people who experience cracks in their family and friendship relationships when they have problems with financial matters. So I would agree more if we have to manage matters related to finances ourselves without the interference of family or friends which is still better than involving family and friends for that kind of thing.

It’s lime a mutual funds but if you are going to do this with your friends, better not to because conflicts might happen especially if someones wants to get his money back instantly.

Collecting of funds and investing it is already happening with the stock market and it is being handle by the professionals so you can have more confidence with your funds. It may look higher since the capital is big, but with the trust issues, I think I will not go for this.

While it has its obvious merits, one of which being the fact that the potential for profit is significantly higher than if you're investing alone, the drawbacks of investment pooling is a little too high for me to consider picking it up. For one, the risks of the bagholder running away with the money we have is quite high, even if it were to be someone you already knew and trust (I've been in this same spot before), problems with the division of profit and all that could easily be resolved in my opinion, but I'm just too skeptical in these kinds of things that I wouldn't really be able to trust someone with my own money even if my life depended on it lmao. Not saying that it's not a viable strategy cause for all I know massive corporations and infrastructures were built using this strategy in the past, it's just not for me.

Many people are saying about trust issues but I think I read somewhere in OP where they said that a written agreement should be done and legalised. If such agreement exists, there won't be ground for misunderstanding.

Crowd funding and group investment is a key, I will like to try this with my friends but I don't know how they will feel about it. There is power in joint efforts. I have seen people do that in Real Estate and it worked perfectly well.

Even if there's an agreement, there's still a risk of losing your trust.
If you can invest on your own much better, but if you really trust your close friend and you believe on his knowledge about trading and investing, then why not maybe you can just invest small portion of your extra profit so you will not miss the fun with your friends. Personally, I prefer to invest on my own privately.

I quite agree with your opinion. Wherein is it wiser for us to manage our own investments without having to do it with other people or trusting other people for our assets. I have seen many cases where they lost most of their money because they trusted their investment to be managed by someone else.

So in this case, every investment that we make might be better managed by ourselves, even though the profit we get is smaller because of the small capital, but in terms of security, of course it is very prioritized. Besides that, there is no feeling of anxiety or worry about our money or when we need it, we can take it instantly without having to wait. Apart from that, in the current era, it may be difficult for us to find a word of honesty from someone or our friends or new people we know, so that it will have a negative effect later if one of them makes a mistake which can have a big impact on the course of the investment they are making. So I don't think that's a very good thing to do and might cause all misunderstandings to occur later.

I highly agree since Bitcoin does not have a high entry investment.  Even a $5 amount purchase is allowed in some exchanges.  Besides pooling money to invest in Bitcoin will only cause trouble to the person who gives the idea.  I know one member of this forum who does this strategy way back 2017(he is not active here anymore) and ends up with a death threat when Bitcoin value plummeted since he can't give back the amount his co-investors had initially invested since the price of Bitcoin dives really hard.  I do not know how he solve that problem but one thing I heard is that he has to sell some of his properties in order to give back the money.  

But I think if he hodl those BTC, he might be at a profit right now (I have no more news about him since we stopped communicating with each other after he failed to pay his debt).

You wont really be giving back the money or in fiat form if you have still that BTC amount completely which you could really simply make out those explanation that it is due to volatility of the market.This is why
its really that important that on the time that you do make out arrangement or agreements on the money that you are pooling in between investors then there's should really be those disclaimers about the market
volatility. If you are the ones who had been holding the funds then you should really be that responsible on holding it and not on being tempted on making use of those funds without other investors permissions
because that would really be creating that huge chaos on which it is something that a normal thing to happen. This is why i dont really prefer on having divisions or other people involved when it comes to investment,
because on the time that money would really get involved then temptations arent something that would be avoided and would cause up distrust on everyone.

It's true that what makes this strategy difficult is because it's difficult for us to trust other people. And sometimes there are differences in the interests of each person which can lead to conflict or something like that. So it's better for us to stay focused on investing for ourselves and with our own capital. We can start with a small investment and gradually move on to a larger investment. Don't rush in pursuing success. It's better for us to enjoy every process and slowly we increase the assets we have.

What if they are the ones who approach you first for this? And then you explain the risk to them properly. If they still agree to join, they will now accept whatever outcome they will get. Sometimes it's better to have them as a partner because you know them already. There is the confidence and they are easy to approach than to a random person. You will also feel happy when you see that your love ones are improving their life.

For me, Bitcoin is not a high-risk asset. If there are like that, it would be the pump and dump coins. Diversifying is optional. It might be beneficial but the cons that I see here is that it can give us an extra pressure when managing our portfolio.

Although we rarely see this in bitcoin investment, many cases that occur in the business of collecting money with friends to run it will end in mutual distrust and in the end will lead to conflict. If the investment can be done independently it will be much better than collecting money with friends, because if we have small capital we can use the DCA pattern as a strategy.

There are many risks that will occur by raising funds and engaging in investments. Patterns that are carried out by some people in the stock market and are handled by professionals also cannot be guaranteed, but if you and anyone can entrust this to them, the decision is up to each of us individually.

I don't buy this idea at all ...it may work for other assets like properties and all but a total no-no for crypto assets. Even if you decide to have an agreement on how to share the profits there is still going to be issues. People are innately greedy and may harm the others so that they get the own thing to themselves. No matter how long it will take, invest in crypto assets yourself.

It is true that currently there is a crisis of trust where fraudsters work together to convince their targets to join and invest in their platform, moreover they know that there are quite a lot of funds to be disbursed. I think only a few have the courage and with a written agreement, of course, to avoid unwanted things in the future.

For crypto assets, I really think we shouldn't trust anyone to work with. Because there is no point in working together to raise capital just to buy bitcoins. Because we can even buy Bitcoin with minimal capital. Unless we raise joint capital to build a joint business such as building a shop and the like. I also have acquaintances who are raising capital to build big businesses. But that acquaintance of mine did it with his brother and no one else. Because of course we can not do it with other people. Nowadays there are too many people we can't trust.

Since cryptocurrency has some privacy, this will make no one know where the coins go if there's someone move it. Each of them will accuse each other and no one will admit it, the scammer just need to mix the coins and use P2P exchange without KYC.

Yeah raising funds is only work for business, however even though it's your bother, sister etc still no one can be trusted, so make sure you're be ready with the worst thing that might happen.

I agree that it's very difficult because you are literally ending up with giving it to someone and in return they may end up with a loss and that's going to end up with a big terrible ending. That person may just get your money and could end up not caring about what you think at all.

I believe that if you are going to end up with doing something like this, at least do it with people you are very close with in real life. Your very best friends, your family, those type of people would at least be close to you and you would know that if they fail, they are going to fail and not scam you. Even in that case there are many stories where family members end up scamming other family members and that's why it would be very risky to do.

Technology has gotten to the point where even blending can't provide privacy. Soon privacy will be an empty sound. And on exchanges without KYC, one can transact for a certain amount and there is no guarantee that this amount will not be confiscated without explanation

In such way you'd have larger capital which would allow your business to be stretched longer especially in downtimes. But having larger capital won't guarantee success even if you have multiple number of 'heads' to come up with a more efficient business plan. It still depends on who are in that circle. Also  if you will have the same amount of investment each, who'd move for your business? will the tasks be distributed equally as well? It should be and this is where problem may arise 'coz there are people who have the money to invest but are lacking the will to mke a business bigger. So better choose the right ones in that pool.

I really understand that cryptocurrency is about trustlessness, but if things are done legitimately and signed by the law, it will make people behave well. Most times why people have issues in such partnership is when they do so based on trust and have no legal backup.
No matter how close you are with your friends and family, it is nice to have good arrangement legaly. It doesn't really mean you don't trust them in the daily endeavours, but business and investment is different.
Investing alone is a good option, but the investment power will not be as when more people agrees to co-invest.

Why do it? Bitcoin and other crypto can be bought without pool investment. The increase in profitability both in single investment and in the pool (each receives a share of the profit depending on the share from the total pool) will be the same.

But there are some nuances.

Which of the friends and brothers will keep the crypto bought in the pull? Although, this is solved by creating a multi-signature (in case of btc), so that access to these crypto assets requires the presence of all members of the family-friendly pool.

How long to store crypto in this investment pool? Some will want to sell earlier, others later, which will be a cause for disagreement.

As is often the case in life, any financial and monetary relationship with friends and relatives turns out to be a test of the strength of relationships, which most often end in scandals, quarrels and breakups. You should think over everything many times if you want to unite in  investment pools.

In my opinion, there are no pluses from merging into investment pool, but there are enough minuses.

When we are making decisions on this kind of instance, we need to focus on both the present and the future consequences of taking such decision in working together with people, not everyone likes a joint or partnership investment because the later end will always looks shady amidst the fellow investors and everyone finally partways, anything that has to do with money must be on a sole proprietor business ownership and not joint task, but there are situation whereby some business could actually requires such, we can take the risk in starting even though the relationship with them in doing business together may not last, joint effort is discouraged in some situations and some settings awesomely welcomes such an idea.

Just throwing this out there:  business and family/friends generally don't mix.  And OP, what you've described is not exactly a revolutionary new idea.  There are many examples of family members pooling their wealth to invest in whatever ventures they're into.  The Winklevoss twins come to mind immediately in the context of crypto.

Plus if you just want to pool your wealth with others to invest in things like stocks, mutual funds exist solely for that purpose.  In general though, I really don't think it's a good idea to get involved with a business transaction with someone close to you--if things go sour with money, they can easily go sour with the relationship, and IMO money just isn't as important as family and friends in life.

This may work for some especially for a family and blood related people but this mostly won't work for everyone. I have seen that these types of relationship don't last if it's about finance related matters.

The fight between each other is always startled based on what each person that is involved with this pool funding of assets and investments. There's always the disagreement that happens for each one of them thinks that they're better than the others.

From there, the argument grows until they won't work again together. So for those that are able to work this well, that's good until it lasts.

This is why I would never do this because there aren't that many people that I would be believing to do something like this. I would feel that I am about to get screwed over and that's why I rather not do it at all. I have once did it in my life as a "wager", like I gave my money to a friend who said he could double it and said that if he can't then we all knew that he had enough money to pay me anyway, and he did, and proved it as well like not that he put his money on top of it, and even then I was scared like crazy.

I did it because it was a bet between friends, not really care about the outcome of it to be fair, I just wanted to bet with a friend, and if I felt like that with a friend, it would be impossible for me to do it any other way.

Having a business partnership with your friends or even relatives are all good until they all get greedy and evil because of the profits you guys are making.

I'd rather make my own business, or even investment so that I could sleep well at night knowing that my money is safe. It's better to hold your own money than to trust someone to handle it and wait for profits. Also, investing in altcoins is a very risky thing to do, not all of them could give you profits in short term or long term process, so always do your own research first.

I agree with you on the emotional risks of mixing personal and work ties. In charge, you know where to go. Let's examine this differently. Business synergies exist. Two heads are usually better than one. Greed alters the outcome? It's awful. However, well-managed advantages remain. Clear terms and conditions can help in these circumstances.

You invest well! Altcoins are wild. High-risk, high-reward... or failure. Diversity is my topic again. Balance risk and return by investing in multiple things. But you're right. We all need to study a lot.

And in essence it is better to avoid this one way. Because even though the cooperation in merging the funds initially went smoothly and well. But when the money that was collected started to be invested and then suffered losses, I was more worried that it would destroy brotherhood and friendship as a result of this. So it would be better if we prefer an independent path that can still allow us to manage our business or investment freely according to our wishes. Even though our business and investment starts with small capital, if it can make us more free in making choices then I think it will be better for the comfort of our lives.

But if it turns out that the situation leads us to this way then well doing it with our relatives will be much better and more trustworthy. And of course we have to have a written agreement between us and our brothers regarding profits and losses and the like. so that everything can run without conflict in the future.

In my opinion, combining funds is not that easy, if one of the investors does not really understand percentages in managing finances. Because people who have succeeded in achieving that success have commitment, compact agreement and of course the distribution is carried out in a structured way on paper and its implementation. Therefore, in order to realize a fund pooling system, the main thing that needs to be emphasized is agreeing on the management of implied and explicit profit sharing. And if someone deviates, sanctions have been prepared for that person.

This is the kind of deal which demands a lot of mutual trust among the participants. I really admire when it works even inside a family clan, as mentioned on this thread the arabian family as example, because on most cases it doesn't seem functional and I take my family as an example of that, due to knowing there would be a lot of conflicts and mistrust among brothers, uncles, cousins and so on. After all, each person prefers to have their own investments without mixing it with others. That is what I've learned where I live by seeing how people around behave, so I'm not an enthusiast of the idea presented on this thread of pool investment strategy.

The thoughts of every individual is different from others so when two or more people are involved in mutual business or trading then there will be lots of conflicts between them.

I think it will be better to use our own money rather than using mutual money because in this strategy you will be dependent on other's decisions.

I think one should be free to take decision and other benefit of self investment is that no will be there to blame you if unfortunately you take some wrong steps.

In a way I can understand the people that want to do this as there are no other people in which you trust the most than your family and friends, but by only choosing from those two groups of people your options get really limited, it is better for anyone looking to start some business to do it with people that are capable and which can make the business grow, now you must still trust those people, but trust can be developed relatively quickly while the skills necessary to start a successful business take years to master.

Sometimes to have a Cooperation is good but I believe in one man squad in any business any business or investment that is above two individuals always result out negatively at the end because one person most be claim to be superior among others and they most be definitely cheaters in a cooperative business. My advice to people who want to combine and get a one particular asset is that you most at least try on your own to ensure that you have raised a little fund to start a personal business instead of depending on a joint business, because one person might made away with everyone effort because of greediness, on my own personally I don't agree in such that I can combine with people especially my friends to establish a firm, because I know quite well that at end the business will separation among us.

Corporation do sucks.

Nothing beats out if you do go on sole proprietorship on which you wouldnt really be tending to have some share up with other investors because this is where argumentation would really most likely to happen.
Despite on having those agreements and write ups, it cant really be avoided that there would be some suspicion and questions about inbound and outbound transactions which it would really be raising up some question which it might lead to some possible problems on the time that one of those members would really be taking it seriously or would really be that too impulsive when it comes to emotions.

I do understand on why there are some investors or business owners who would really be tending to create one is that if possible then going solo would be the key but there are ones who cant really be able to established on their own on solo funds because its not enough and this is why it would really be ending up on pooling up those funds via corporation.Im not saying that it would be a guaranteed chaos if this one happens but there are really problems which are inevitable specially on having a business with having lots of business partners on which i dont really recommend.
If you dont really have no choice but you are really that eager on building a business then you have to dealt about these possible problems.

I don't think, pool strategy investment is good for someone to grow in wealth in the society because something can happen that will make one shareholder not to be truthful in the business, which it can lead to the collapse of the business or reduce the income that is coming into the investment, and it can also destroy the unity of the family. Any investors that want to go far or multiple in wealth in cryptocurrency investment should learn how to invest alone in cryptocurrency investment, because it will help he or she to exercise patience in holding whenever there is a bearish season. Corporate business is only good for people that truly trust themselves before going into such assets investment, and it will help them to grow fast in wealth because there is a trust among themselves which will be very easy for them to achieve their goal on time.

When using pool investing, you need to believe in a fair distribution of profits. Those who manage the pool may have their own not entirely honest goals. Of course, if the pool is based on smart contracts, there is more trust, but otherwise it is worth forgetting about.

The fact for me is that 98% of people shouldn't start any business with either their family or friends. We know how emotional and illogical humans can be and also because they could find it very hard to separate personal relationships from business decisions leading to  problems, conflicts and complications.

This is  not always the issue though as you have mentioned the Winklevoss twins which in my estimation falls in the 2% sector of people shows that it can work if handled properly.

Before a person fathoms starting a business with family or friends, they must sit down  and clearly define the roles, the  compensation, equity, and boundaries in a contractual manner. Once this can be achieve we are certain any conflicts that may arise in the future would have been nipped in the bud. I would also add that they should be able consider the unbiased advice and of seasoned professionals in the industry when it comes to making critical decisions about the business.

So this is what is most feared in this case, namely the risk of conflict between fellow capital holders in a business that can make a business that has been growing rapidly experience a decline again due to the conflict that occurred. Even business destruction can occur if internal problems arise among the owners of capital.

I've seen something like this and it's absolutely horrific. One of my friends had the idea to start a business but he lacked capital and finally he decided to raise capital by working with some friends he knew.
At first everything went smoothly and business boomed. But when the business is really advanced that's where problems start to arise. Well, mutual suspicion arose between my friend and his friends. They started talking about who should be boss and started arguing about profit sharing. My friend's position is really at a disadvantage. he who had the business idea but his friends who also helped with the capital turned out to be asking for a bigger share of the profits.
And in the end there is a fight and a bit of a fight. eventually the business became poorly managed and ended up bankrupt. Everyone split up and started their own independent businesses but all failed. And my friend is currently starting to pioneer other business ideas, but this time he started with his own capital. He does not want to continue the business idea that was successful with his friends. because surely there will be other problems if the business is continued.
These are just some true stories that I have seen in life. There are still several other stories that make me personally never start a business by collaborating with other people. Especially if it's in investment. So when a loss occurs I'm pretty sure one of the parties will protest and start asking for accountability. Fraternal relations can even be destroyed in this case.

Yeah, true. I would never go into business withy any money that my family members have, it just doesn't make sense. Even strangers are better because I can talk reason with them, but when you are dealing with family members it becomes an issue.

My spouse has some family money stored away, we have never touched it even on our worst day, literally when it was health reasons and we needed to pay medical bills we never touched it, because we knew that if we did, then our parents would have kept reminding that and would cause a lot of drama in the house,  so we took debt and got loans and maxed our credit card and did alright, instead of doing anything that would hurt us in the end, this was much better choice.

As soon as money is introduced to a relationship the dynamic immediately changes and not for the better, if you are the boss and you just hired a stranger for the job the only thing you need to do is to order them to do what you need and they will strive to accomplish that goal, but with a family member things are much different as if you gave the order with the same tone this may be the beginning of a big fight and you will always have to walk on eggshells with them, making your work way harder and dropping the efficiency of your business.