Investment Challenges and Solutions

[Botnake]

It's obvious that capital is challenging to some people just like you have said, many beginner in the crypto space also find it hard to get capital to start their investment, I believe that some of us uses loan money to purchase Bitcoin. But from my point of view, if you don't have good knowledge about Bitcoin there's no need to take a loan to purchase Bitcoin.

Aside from having no concrete knowledge and experience on the investment you plan to enter, another challenge is how to finance your investment. Capital could be a big challenge for majority, but sometimes being practical helps us in reducing the risk involved, thus taking a loan if that’s actually highly needed.

However, before jumping to that decision, one should also ensure himself if he’s actually capable to manage the risk and maximize the full potentials of the investment and turns into progress. Otherwise, doubting oneself will only create the main cause for investment to fail and won’t progress.

[Publictalk792]

Aside from having no concrete knowledge and experience on the investment you plan to enter, another challenge is how to finance your investment. Capital could be a big challenge for majority, but sometimes being practical helps us in reducing the risk involved, thus taking a loan if that’s actually highly needed.

However, before jumping to that decision, one should also ensure himself if he’s actually capable to manage the risk and maximize the full potentials of the investment and turns into progress. Otherwise, doubting oneself will only create the main cause for investment to fail and won’t progress.

You pointed out important things for people who want to invest not knowing much about it and getting money. It is true that many people have good ideas but if they do not really understand investment it is very risky from beginning.
And then there is money for most people getting money to invest is big problem. You are right that it is important to be smart and only think about taking loan if you really need to. It is easy to want to invest quickly but borrowing money without really understanding investment makes things much more stressful and can easily lead to problems.
Thinking honestly about yourself is also good and important. Before even thinking about loans you need to ask yourself if you can handle risks and really make investment successful. If you doubt yourself that can actually cause investment to fail. It is better to be honest about what you can do before you start instead of investing in something you are not ready for.

[Gozie51]

It's obvious that capital is challenging to some people just like you have said, many beginner in the crypto space also find it hard to get capital to start their investment, I believe that some of us uses loan money to purchase Bitcoin. But from my point of view, if you don't have good knowledge about Bitcoin there's no need to take a loan to purchase Bitcoin.

That is serious and an unhealthy investment strategy. How do you know about this or you have a data for this or you have friends you go for loan to buy bitcoin?

This is too dangerous because bitcoin doesn't have one wave of direction, even when you expect it to move in your favourite direction, it might not at that particular time and you may get scared and sell since you are running on borrowed money and that will cause you to lose some portion. It is not a good practice anyway. I don't have to borrow to buy a volatile asset like bitcoin but I can do that for landed property.

[Pi-network314159]

It's better not to diversify, if you don't have the proper knowledge of the asset which you want to diversify into so that you don't regret your actions. Diversifying is for those who think that it's a risk to invest only in one asset. For this reason, they will prefer to spread their wealth into two or three assets so that if one isn't doing well in the market, the other one can balance the loss.

Yeah diversification is for those who are afraid of investing only in one asset due to the fear of losing all at once, just as they said that it is bad to put all your eggs in one basket, that is the reason many people prefer diversifying. but the problem is that they make mistake by diversifying into the wrong asset thinking they have invested righly only time will tell if they did well or not. Expecialy when they diversify into shitcoins. It is better we diversify into real estate, buying of shears, stock and bonds or buying of land than gambling on altcoin that may just dump at anytime.

[Peanutswar]

On the third statement it seems in short you are seeking for additional source of income through making an investment like stocks but it doesn't state how about the people who doesn't have a money to invest with the stock and still would like to seek an investment, well seems its only for the people who have a capability such as the balance to make an investment. On the last statement its a normal thing to do with an investor we have often a saying that don't put all in a single basket instead diversify your money so if you lose to other one you didn't lose every thing on your investment. Which is a I agree with this because to make assured to yourself you didn't lose all and other investment can cater the losses you've got.

[qwertyup23]

True, capital really is the biggest hurdle when starting a business.
Back when I was in the corporate world, I already had the idea of starting one, but my salary was so small, it wasn’t even enough to give my family a comfortable life.

If there is something that I observed, having the capital to start your business and going "all-in" is definitely risky.

I watched the show Shark Tank and I observed that there are lots of entrepreneurs who start their businesses by leaving their current job. They first tend to save-up for their initial capital and go full-time with their businesses. Though some have been successful, others were not. The problem is, with no other means of earning income, they start to incur debt along the way.

Luckily, I discovered Bitcoin and found some opportunities there. What I earned back then, I used to start a business, which is already running now.
If I hadn’t found Bitcoin, honestly, I might still be stuck in the corporate world today.

I definitely share the same sentiment with you!

I am very grateful for the opportunity of knowing BTC and this forum. Just participating in campaign signatures have significantly helped me in providing an alternative means of income while I am continuing my post-graduate studies. Not only that, but understanding cryptocurrencies and taking advantages of its volatility can be a perfect investment either for short or long-term.

[Stepstowealth]

But if we diversify wrongly, we will end up servicing our debt for what we have diversified into.

Individuals who have tried diversification and failed have failed to share their testimony about it this is why some people still hold the motive that diversification is a way to increase their wealth, and I don't blame them because they say so without considering the risk.
They do not consider the risk, maybe because they do not know the risks, and they do not know the risk because the have refused researching to know the the truth.

[Obim34]

4. Too much diversification
....

the idea of ​​diversification can sometimes be misleading to investors, as the article says, that when someone diversifies they may not get more than they would if they had chosen one or two specific assets. like in this case, when a novice investor starts investing in cryptocurrency, he starts with not much capital, but because he read that diversification can reduce risk, he starts investing in more coins, when in fact he could have done it on bitcoin alone and gotten a bigger profit potential compared to diversifying it on more shitcoins.

The rules are simple, if we can't control what is diversified into then we should not.

Diversifying implies more risk challenges, if it gets out of control, then it will cause financial disaster.

Sometimes it may not be a problem from the investor, it might end up becoming a wreck from that particular investment due to some economic challenges at that moment.

[Dzwaafu11]

It's obvious that capital is challenging to some people just like you have said, many beginner in the crypto space also find it hard to get capital to start their investment, I believe that some of us uses loan money to purchase Bitcoin. But from my point of view, if you don't have good knowledge about Bitcoin there's no need to take a loan to purchase Bitcoin.

 To me, honestly, if someone has the knowledge of investing in bitcoin, it’s not advisable to take a loan in the name of investing in bitcoin because there is no point in taking a loan to invest in bitcoin. Since there is nothing wrong with using DCA to invest in bitcoin, I think someone can use the DCA method of investing in bitcoin to accumulate more bitcoin gradually.

It’s so easy to buy when you have your own money, even if you didn’t buy at the same price. Since you are planning to hold for a long period of time, you will definitely get your money back with profit, but not until you take a loan to invest in Bitcoin, which is not advisable.

[Curious T]

When it comes to this "fractional shares", I always see it as one of those things that make sense in theory, but when it's time to be practical, it might not work out well. Because of that, I just assume it's me who doesn't know how the fractional share and the stock market entirely really work. 

From the article posted:

However, this is changing as significant brokerage firms make it easier to buy fractional shares directly. This change allows you to specify how much money you want to invest in a company instead of how many shares you want to buy, and you can buy a tiny piece of a share if your financial investment isn’t enough to buy a whole one.

The average increase of a stock price yearly is 10%, so how much are you going to make with your fractional share in a year?
Let's assume the share price is $1000 and you buy 20% of that as a fractional share share which is $200. If there's a 15% increase in the share price at the end of the year, that's just about a $30 profit after a whole year. Even if you want to hold it for a long time, the profit at the end of those years won't be worth the time. Certainly, there can be other investments that can give you more than that in that same period.
Buying a single share is not that profitable, not to mention buying fractional shares.
This is why

I need someone who understands the stock market to explain this better to me if I'm getting it wrong.

[Ishicryptic]

I have come to the realization that it takes money to make money, unless you are satisfied with taking pay checks but most of them are only enough to cater for your immediate needs. If you want to make a lot of money especially the type where your physical presence is not required, you need funds to invest in such projects. The good thing is that with investments like Bitcoin, you don't need a lot of money to start it, you can DCA and increase your capital+ profit on the long term. As it's stated in the OP you can buy shares in fractions if you don't have the funds to buy 1 share, we don't have much excuse about not having sufficient funds for investment.

Some people are always in a hurry to diversify their funds into another investment without carrying out enough research to know the history of the new investment, any mistakes can mean loss of their funds. If your funds is in a trusted asset like Bitcoin there is no need to be in a rush to diversify because you are sure of being profitable on the long term. I also don't believe in too much diversification, 2 to 4 reputable investments is enough by my own estimation.

[Alone055]

Point number 3 explains how one can manage their investments with a small capital when they are investing in traditional marketplaces such as the stock market, but this problem has been solved since the beginning with cryptocurrencies, because one never needed to buy a whole coin or a token if they wanted to invest in the cryptocurrency market. Bitcoin was the very first cryptocurrency, and it had eight decimal points, which meant that one could buy even a fraction of it as long as it could be transferred or traded. So, someone who even has $10 as their capital can start buying cryptocurrencies without any problems from the beginning.

About point number 4, it's true, overdiversification is never a good thing. Investing your money in 20 different cryptocurrencies or assets is never a good idea when you can choose a few that you know have the potential to outperform other assets, or at least have been performing well lately. You can always check the history of all assets and decide which ones are worthy of being in your portfolio. Invest higher amounts in fewer assets rather than investing smaller amounts in too many.

[btcltcdigger]

Number 4. is especially true for many new people, and i can say without any regret, i was amongst them.
When i managed to get some more money, i started buying all top 100 CMC altcoins, like $100 of each, hoping one of them would skyrocket.

Sadly, none has really made any significant money that i can say "hey this was totally worth it". In the end, i made like few bucks profit, and that's it. But, a valuable lesson was learned

[Taskford]

It's obvious that capital is challenging to some people just like you have said, many beginner in the crypto space also find it hard to get capital to start their investment, I believe that some of us uses loan money to purchase Bitcoin. But from my point of view, if you don't have good knowledge about Bitcoin there's no need to take a loan to purchase Bitcoin.

 To me, honestly, if someone has the knowledge of investing in bitcoin, it’s not advisable to take a loan in the name of investing in bitcoin because there is no point in taking a loan to invest in bitcoin. Since there is nothing wrong with using DCA to invest in bitcoin, I think someone can use the DCA method of investing in bitcoin to accumulate more bitcoin gradually.

It’s so easy to buy when you have your own money, even if you didn’t buy at the same price. Since you are planning to hold for a long period of time, you will definitely get your money back with profit, but not until you take a loan to invest in Bitcoin, which is not advisable.

I guess it depends on the situation or intention of the borrower. If they aim for long term and see some good opportunities but don't have money at that time then its good to borrow money to cover up those situation then gather good volume. Also as long as they can pay and they use it for valuable investment then I don't see anything wrong for taking that decision.

What I think is wrong or bad decision for doing that if they use it for unknown matters and just don't know what to do after they take that loan. Since for sure that there's huge chance for them to lose their money, especially if they don't have any good direction to follow and just want to risk by trading their borrowed funds then aim for short term profits.

[puloweh555]

It's obvious that capital is challenging to some people just like you have said, many beginner in the crypto space also find it hard to get capital to start their investment, I believe that some of us uses loan money to purchase Bitcoin. But from my point of view, if you don't have good knowledge about Bitcoin there's no need to take a loan to purchase Bitcoin.

In my opinion, even though we already have basic knowledge about bitcoin, seeking capital by borrowing is not a wise choice because the price of bitcoin is unpredictable while debts must be paid. Especially if you are a beginner, this will clearly be very risky.

Please note that the key to investment is to have money first. If you do not have capital, it is better not to be forced to invest because it will destroy your finances in the future. The solution is of course to find capital to invest by looking for additional income. Because basically to invest you don't have to have a lot of capital, even if you have small capital you can invest using the DCA strategy.

[SquirrelJulietGarden]

In my opinion, even though we already have basic knowledge about bitcoin, seeking capital by borrowing is not a wise choice because the price of bitcoin is unpredictable while debts must be paid. Especially if you are a beginner, this will clearly be very risky.

The advice always is "Invest what you can afford to lose" and I am sure you can not afford to lose money you got from a loan, it's not your money and you have to pay it back. Secondly such money used for investment contains more risk and pressure on you, and it can be start of something bad on your investment decision or force you changing from investment to trading and gambling.

Please note that the key to investment is to have money first. If you do not have capital, it is better not to be forced to invest because it will destroy your finances in the future. The solution is of course to find capital to invest by looking for additional income. Because basically to invest you don't have to have a lot of capital, even if you have small capital you can invest using the DCA strategy.

I agree with you and with Bitcoin market, chance always exists and you have enough time to join this market as an investor with your own money and get profit. There is a DCA strategy for investment so that you can invest gradually with time by purchasing small amount with time. If you can work for getting money, you can apply DCA strategy with time and there will be not much pressure and stress like taking a loan.

For example $10 DCA weekly in four years.
Total investment capital is $2,090 and now it values at $3,854, ROI is 84.43%. If you feel hard to have $2,090 for investment today, you can do it with $10 weekly and in four years easily.
https://dcabtc.com?sd=2021-04-30&sda=4_years&f=weekly&d=4_years&ac=1000&c=false

[Gozie51]

But if we diversify wrongly, we will end up servicing our debt for what we have diversified into.

Individuals who have tried diversification and failed have failed to share their testimony about it this is why some people still hold the motive that diversification is a way to increase their wealth, and I don't blame them because they say so without considering the risk.
They do not consider the risk, maybe because they do not know the risks, and they do not know the risk because the have refused researching to know the the truth.

Yeah like I said, if we diversify wrongly then we have to start paying debt because the hope of income from the failed diversification would have been lost. Diversification is not bad but what is bad is to wrongly invest. Some people feel it is diversification when they pull part of their bitcoin investment out and move to them into altcoins. That is wrong diversification because bitcoin is more profit oriented than other altcoins. So it won't be a good business sense to split your bitcoin hodling and put into shitcoins but if you split your bitcoin hodling and invest in buying of landed property then you have possibly done a good diversification.

[CryptopreneurBrainboss]

Diversifying is only for those who want to secure profits from different sources, but generating profits will only be possible if you know well how to make that investment work and progress. Otherwise, if you only diversify for the sake of profits alone, you aren’t securing profits, but you are only wasting your money and time trying to diversify on which you aren’t familiar at all.

Diversifying isn't about securing profits from different sources but also about protecting your investments because when you diversify, it offers your the chovesyof cashinyoutbform other investment that re double alright when the other investments aren't having the good days but when you had only one investment and not other sources of income, youllybe force to sell your assets under loss and that's going to affect you.

You shouldn't think about diversifying when you haven't studied the other investments that you want to get into to confirm that there's no association with your current investment and also verify if it's legit because many people make the mistake of leaving a genuine investment for scams because they want quick returns.

[SuperBitMan]

Diversifying is only for those who want to secure profits from different sources, but generating profits will only be possible if you know well how to make that investment work and progress. Otherwise, if you only diversify for the sake of profits alone, you aren’t securing profits, but you are only wasting your money and time trying to diversify on which you aren’t familiar at all.

Diversifying isn't about securing profits from different sources but also about protecting your investments because when you diversify, it offers your the chovesyof cashinyoutbform other investment that re double alright when the other investments aren't having the good days but when you had only one investment and not other sources of income, youllybe force to sell your assets under loss and that's going to affect you.

You shouldn't think about diversifying when you haven't studied the other investments that you want to get into to confirm that there's no association with your current investment and also verify if it's legit because many people make the mistake of leaving a genuine investment for scams because they want quick returns.

Yes you are correct CryptopreneurBrainboss Diversifying helps you to hold on to your investment just like you explained however before someone will Diversify let him or her build that his first investment to a good point or level after that he can Diversify.
Some people don't like the idea of Diversifying and that's why those you see that sell off there asset because of lack of money are those that don't Diversify, if you Diversify you will have other source of income and if one is falling it won't affect you that much and you can still have money from the other and from there lift the falling one up again.

Yes if one wants to Diversify to any investment he should make a very good research about that new investment or business in other to confirm that is a good investment so he won't have to lose the money.
There are some set of people who Diversified into Ponzi scheme and they lost there money, please I will advise everyone to stay away from Ponzi scheme so as not to lose there money.

[DubemIfedigbo001]

It's better not to diversify, if you don't have the proper knowledge of the asset which you want to diversify into so that you don't regret your actions. Diversifying is for those who think that it's a risk to invest only in one asset. For this reason, they will prefer to spread their wealth into two or three assets so that if one isn't doing well in the market, the other one can balance the loss.

However, you don't invest in bitcoin and diversify into shitcoins because they're of the same line of asset and bitcoin remains the king of cryptocurrency. When diversifying, it good to diversify into a different type of asset like god, bond or stock.

Diversification is not a bad thing, it gives you more security for your wealth, I only frown at over diversification because it might even mean lack of focus on the part of the investor, when you have lots of assets to manage, you might not end up giving your best to all of them and it limits your profitability potential. I do not encourage diversifying within asset of same discipline that much, if at all. For example, I'm into bitcoin and I only hold other assets I got from mining without putting a dime into them, but I still hold them in case they do well on the long-run, What I might consider putting my money into would be agriculture or real estate which is another profitable investment discipline.

in the total, I may not be willing to invest into more than 5 different disciplines so that I can effectively be involved across every investment vehicle I boarded. Surely smart diversification not only gives better profits, but it also means a good sense of security on your investments.