investing in bitcoin

[ohlawd]

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?

[nobbynobbynoob]

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.

[Chet]

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.

[b!z]

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?

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

[ohlawd]

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.

[Jocky]

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.

[davidgdg]

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 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.

[zeroday]

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.

[jing_troop]

.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.

[jing_troop]

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.

There's always Spain.

[ryanAC]

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...

[zeocrash]

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

[Isokivi]

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.

[Tuckie]

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

[TorBroker]

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.

[AnonyMint]

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.

Sure, that's not a bubble, it's steady growth. Actually I was surprised that the price of BTC didn't go up right away after the halving. But now it makes sense.
We will see dips...that's for sure!!!

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.

[AnonyMint]

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.

Sure, that's not a bubble, it's steady growth. Actually I was surprised that the price of BTC didn't go up right away after the halving. But now it makes sense.
We will see dips...that's for sure!!!

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.

so real transactions is what values a currency? I thought it was offer/demand, silly me... I should re-learn economics and finance all over again... geez.. I've been so blind!

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.

[kslaughter]

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.

[AnonyMint]

My opion is that Bitcoin are never going to go down.

I quoted you in this other thread:

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

[Neoresolution]

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.