Buy the DIP, and HODL!

[JayJuanGee]

Talking about diversification, I'll rather diversify to another investment than investing in other Cryptocurrencies asides Bitcoin, at least one could still use some portion of the profits from other investments like Real Estate, Commodities to continue building their Bitcoin Portfolio.

If we check the performance of bitcoin over the last decade, you will notice that bitcoin is the most performing asset in terms of ROI. Bitcoin has given a better return than real estate or any other investment that you will think of. Sometimes when I hear people say that they want to take profit from their bitcoin investment and diversify to other investment it baffles me. Does it really make any sense that you are disposing the most performing asset to diversify to other things that can't give you half of what bitcoin will give you if you continue holding bitcoin.

 I will rather stick with bitcoin than diversify to any other investment. As an investor if you think you have gotten enough bitcoin that's enough for you at the moment. It will be best to stack up cash, as diversification. with your bitcoin and cash deposit you are far better off than diversifying to real estate or anything else.

It does not hurt to diversify investments after you have already reached decently large size of investments in bitcoin and cash, especially after you might have several years worth of expenses in bitcoin and/or cash. 

Diversification is a discretionary matter, and it becomes more justifiable the larger your investment portfolio becomes.

When you are first investing, and maybe even the first 4-10 years or more,  you might not need to diversify since you are still in the early stages of building your investment, and maybe after 4-10 years or more you start to get to a point of having 1 year or more worth of expenses invested into bitcoin, and if bitcoin had appreciated in price too, then you might have even more years of your expenses in bitcoin and cash, and at that point it seems to make sense to put value into other areas, such as stocks, bonds, properties, commodities and perhaps other areas, and again surely discretionary regarding how to allocate, reallocate or into what to diversify in the even that you want money in various areas and also you might also want your money to be working for you rather than the portion in cash might not be working for you and so once you have even 6-12 months of your investment in cash, you may well want some of that to be working for you, since maybe if you have an emergency you might only need 3-6 months of it, and even if you need more months, you would not necessarily need to access those funds right away but instead several months down the road so some extra funds could be tied up or invested in various other areas in which you would spend your other investments prior to spending your bitcoin.. .

Not easy answers and can become more complicated to generalize how to deal with such situations when the situations of people will likely end up varying after they start to accumulate more assets/investment and wealth and different ways to deal with volatility of bitcoin and even volatility of a variety of markets.

So when we frequently talk about diversification for the mere sake of diversification as dumb, it especially applies to newbie investors who may well be getting distracted by ideas of diversification when it is not needed in the early stages, but diversification does start to make more sense after accumulating more wealth.. even though it is still quite discretionary and varied in the ways that any bitcoiner might end up diversifying... including that there are some bitcoiners who come brand new into bitcoin, but they had already had various other investments in other assets (so they might come to bitcoin already largely diversified), so they are in a different position if they either already have a diversified portfolio or if they come to bitcoin and they have a lot of wealth, then they have more options in which diversification might be one of their considerations, which might not make much if any sense for most newbies who might be DCAing into bitcoin and don't even have very much already accumulated wealth.

For new investors the decision to wait for dips in price can be a little delay in increasing the investment range so DCA should start with the amount allocated for investment and later if he expects more bitcoin holdings to get the price correction level in the long term  cycle. Buy more from Dips

As new investors are always excited to buy, so I would say that newbies should wait to buy Bitcoin. However, using DCA is a very good strategy for buying Bitcoins, so an investor will always be risk-free using this method. It is important to allocate an amount of money before investing, while an investor waits for the dip to buy bitcoins he can by using the DCA method with an amount of money. However, if such a new investor plans to invest long term in relation to this cycle, and he can HODL then I think he will benefit in future. But of course everyone here should wait to buy deep, when the market goes deep it is better to buy more bitcoins and HODL.

You  are giving bad ideas Out of mind.  There are no reasons for newbie bitcoiners to wait, and DCA allows them to start right away and to figure out how much of a budget that they might want to put into buying BTC. There is also no reason for newbie bitcoiners to wait for dips, especially if they plan on buying BTC weekly, even though within their weekly buys they might want to try to time their buys on the dips, while recognizing that it can be challenging to accomplish such buying on the dip and it may not even matter very much in the long run if they buy the dip or not so long as they are buying every week.

The more bitcoin that a guy accumulates, then the more he is prepared for UP.. so if he is more prepared for up, then he might feel justified in holding back some fiat in case the BTC price dips, yet there are always trade offs to employing waiting strategies, even though it could end up paying off if the BTC price dips... so the answer is not clear since we cannot know in advance if the BTC price might dip or not, yet we can decide for ourselves whether to hold back any value for buying on dips, and if we do then how much and then how much of a dip to make various buy on dips... whether once or to spread out the buys realizing that some buys might not go low enough to execute.

[I_Anime]

Dips are unpredictable, so instead of waiting for this period to invest, one should set a fixed source of income and prepare to buy bitcoins immediately i.e. buy bitcoins continuously and prepare to prolong Holding. By buying Bitcoin regularly you can take advantage of any time in any market.

The sky is not always clear, there are times when the Bitcoin market suffers and falls, it's just that, Investors don't know when that will happen. Some investors think that when a downturn occurs, the best thing to do is to take a step back and wait. However, this is a wrong assumption, as Bearish conditions are the best time to increase your portfolio and get more Bitcoin for the next market cycle.

To be frank Bitcoin accumulation seems very easy but a slight mistake can affect one investment, that's why we have to take precautions when we are  investing in Bitcoin. Bitcoin investment is not all about accumulating anyhow ,is all about following the right procedures while accumulating.

Some folks can be accumulating bitcoin aggressively but at the end they would endup ruin their bitcoin investment, Because they didn't follow the right procedures, by being over aggressive without any proper plan like having a backup funds ( emergency funds ), which may lead one to point of not being able to keep up with his expenses and same time with his investment, having the only option of selling off his investment inorder to keep up with his way of living and stuff.

My point is that Bitcoin investment is something one need to approach with proper planning , but with those planning and with enough cashflow. One can easily secure a long-term investment in Bitcoin.

[Ambatman]

To be frank Bitcoin accumulation seems very easy but a slight mistake can affect one investment, that's why we have to take precautions when we are  investing in Bitcoin. Bitcoin investment is not all about accumulating anyhow ,is all about following the right procedures while accumulating.

Some folks can be accumulating bitcoin aggressively but at the end they would endup ruin their bitcoin investment, Because they didn't follow the right procedures, by being over aggressive without any proper plan like having a backup funds ( emergency funds ), which may lead one to point of not being able to keep up with his expenses and same time with his investment, having the only option of selling off his investment inorder to keep up with his way of living and stuff.

My point is that Bitcoin investment is something one need to approach with proper planning , but with those planning and with enough cashflow. One can easily secure a long-term investment in Bitcoin.

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

[mamesso]

That's because more experienced investors know the long-term plan for holding Bitcoin. they have enough experience in the past how Bitcoin moves. and maybe that's what novice investors don't have who are still a little afraid or maybe even panic about the downward price movement. because if you monitor the value of your portfolio it will decrease. no wonder those who are still beginners will experience this. I'm sure a better understanding will begin to exist in novice investors when they notice how their investments grow and decline over a certain period. this process also requires understanding from every investor.

Worry must be thrown away if you want to implement long-term investment. Worry can lead us to make mistakes in the journey of long-term investment. Of course, not all of us have the same thoughts, therefore mental support is needed for beginners who want to run bitcoin investments for the long term. Of course they can start with a small capital while they strengthen their mentality when market changes occur significantly.

Yes, every investor has their own risk tolerance, beliefs, knowledge and investment goals. But the best way to not worry easily is for investors to be able to manage Bitcoin volatility by not trading it too often. Bitcoin is an asset that can be left to run for the long term, when in extreme sentiment, investors must be able to control their emotions by rebalancing the number of assets, the situation will return to a profitable point because so far it has been proven with good performance and is increasingly popular. As growth increases, volatility decreases over time, with wider adoption, volatility will likely be lower than it is today.

[JayJuanGee]

Dips are unpredictable, so instead of waiting for this period to invest, one should set a fixed source of income and prepare to buy bitcoins immediately i.e. buy bitcoins continuously and prepare to prolong Holding. By buying Bitcoin regularly you can take advantage of any time in any market.

The sky is not always clear, there are times when the Bitcoin market suffers and falls, it's just that, Investors don't know when that will happen. Some investors think that when a downturn occurs, the best thing to do is to take a step back and wait. However, this is a wrong assumption, as Bearish conditions are the best time to increase your portfolio and get more Bitcoin for the next market cycle.

To be frank Bitcoin accumulation seems very easy but a slight mistake can affect one investment, that's why we have to take precautions when we are  investing in Bitcoin. Bitcoin investment is not all about accumulating anyhow ,is all about following the right procedures while accumulating.

Some folks can be accumulating bitcoin aggressively but at the end they would endup ruin their bitcoin investment, Because they didn't follow the right procedures, by being over aggressive without any proper plan like having a backup funds ( emergency funds ), which may lead one to point of not being able to keep up with his expenses and same time with his investment, having the only option of selling off his investment inorder to keep up with his way of living and stuff.

My point is that Bitcoin investment is something one need to approach with proper planning , but with those planning and with enough cashflow. One can easily secure a long-term investment in Bitcoin.

I don't really disagree with you, even though you do seem to imply that there might exist some higher level skills to invest in bitcoin, which there aren't - even though the more aggressive anyone is going to be in their investment (in regards to using a lot of their discretionary income) to buy bitcoin, then they are going to be more prone to negative consequences if they screw up their cashflow management and/or make mistakes in their figuring out and applying their level of aggressiveness. 

Persons who choose to be less aggressive in their bitcoin investment (accumulation) approach will be less likely to make mistakes with their cashflow management, even though they would not necessarily be as advantaged as the more aggressive bitcoin investor in the event that bitcoin ends up continuing to perform well as it has historically done.

[Sanitough]

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

[arwin100]

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

That's the basic rule of investment, but somehow lots of people downplaying it since many think that high risk high reward. That mindset is somehow not recommendable since somehow we are tolerating those entities to take advantage with our wants to earn money. That's why aside from having guts to invest on a risky asset we must also be aware about the risk and any possible best decision to take to minimize the risk we might encounter thru the whole process of our investments.

Good thing bitcoin is here and reliable for long term, its just people need to have patience also knowledge so that they would able to know how to deal with this coin and find reliable ways like by using good strategies which is helpful for investor to have smooth ride with their investments.

[Odohu]

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

No this is a wrong advise because if I know I will lose the money, I will never invest it! This statement sound like fud, a way of amplifying the risk in Bitcoin investment. Tell me, how do people lose money in Bitcoin investment? If you can be sincere with this answer, you will realize that most people who lose money in Bitcoin are those who invest today and are already looking to sell the next day; these are not investors but traders. Those who invest in Bitcoin for long term holding rarely make losses. This does not mean that there is no risk in Bitcoin investment. There is risk but it is not as saying that I must invest what I can afford to lose in an asset like Bitcoin that I know have come to stay and is already gaining more acceptance daily. Instead of this statement, let us try and put it the right way which is to encourage people to invest amount that can afford to hold for a some years like 4-10 years which is generally suggested in this thread. This also agree with the records that Bitcoin have been making a new ATH every 4 years which is seen as the market cycle of Bitcoin so any investment kept for at least 4 years is bound to generate profits other things being equal. 

[Marvelockg]

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

No this is a wrong advise because if I know I will lose the money, I will never invest it! This statement sound like fud, a way of amplifying the risk in Bitcoin investment. Tell me, how do people lose money in Bitcoin investment? If you can be sincere with this answer, you will realize that most people who lose money in Bitcoin are those who invest today and are already looking to sell the next day; these are not investors but traders.

that's why it's called a basic concept because at the start, you have to invest what you can afford to loose which is more like another way of saying, Invest what you can afford to leave for long as though it's not your own. no one invest in an asset because they want to loose the amount they've invested. If that's the case, it will be practically impossible to continue investing when you've stacked up a good amount of Bitcoin. The analogy is only to help you invest and take your mind off any thought of selling untill you've reached your accumilation goal.

As an investor, you should know the risk involved in what you're investing into and even though we're certain that Bitcoin is not all that risky to the extent you can just loose all your investments without your knowledge or just suddenly, it's also good to acknowledge certain possibilities so while you're investing most expecially as an early investor, you try to invest an amount you won't need for a long time.

. Instead of this statement, let us try and put it the right way which is to encourage people to invest amount that can afford to hold for a some years like 4-10 years which is generally suggested in this thread. This also agree with the records that Bitcoin have been making a new ATH every 4 years which is seen as the market cycle of Bitcoin so any investment kept for at least 4 years is bound to generate profits other things being equal. 

I think I'm in agreement with this phrase of Investing what you can afford to hold for the long term because it actually speaks volume of the reputation Bitcoin has built over these years and likely, the notion of investing what you can afford to loose might have spring out in the early days of Bitcoin investment when people where skeptical about it. For now, it's mostly for altcoins and meme coin that you can mostly talk about investing what you can afford to loose since they still lack credibility to a large extent.

4 years might be the completion of a circle but it's still not an end point to ones investment goal. At least, if you've invested for 4 years, you should have build an high level of maturity and knowledge about Bitcoin and deciding to leave you investment further than that will then come naturally because you've witnessed almost all the basic market conditions there is to Bitcoin investment.

[summonerrk]

Dips are unpredictable, so instead of waiting for this period to invest, one should set a fixed source of income and prepare to buy bitcoins immediately i.e. buy bitcoins continuously and prepare to prolong Holding. By buying Bitcoin regularly you can take advantage of any time in any market.

The sky is not always clear, there are times when the Bitcoin market suffers and falls, it's just that, Investors don't know when that will happen. Some investors think that when a downturn occurs, the best thing to do is to take a step back and wait. However, this is a wrong assumption, as Bearish conditions are the best time to increase your portfolio and get more Bitcoin for the next market cycle.

To be frank Bitcoin accumulation seems very easy but a slight mistake can affect one investment, that's why we have to take precautions when we are  investing in Bitcoin. Bitcoin investment is not all about accumulating anyhow ,is all about following the right procedures while accumulating.

Some folks can be accumulating bitcoin aggressively but at the end they would endup ruin their bitcoin investment, Because they didn't follow the right procedures, by being over aggressive without any proper plan like having a backup funds ( emergency funds ), which may lead one to point of not being able to keep up with his expenses and same time with his investment, having the only option of selling off his investment inorder to keep up with his way of living and stuff.

My point is that Bitcoin investment is something one need to approach with proper planning , but with those planning and with enough cashflow. One can easily secure a long-term investment in Bitcoin.

I would also like to add that you should always remember that you need to leave money for everyday expenses, because many investors make a mistake: they want to quickly accumulate more Bitcoins, and therefore allocate too much of their Fiat for buying at DCA, after which they do not have enough to live on. And they have to withdraw cryptocurrencies back into fiat, and such an approach partially ruins the idea of ​​measured and correct accumulation of digital gold.
It is also imperative not to forget about security in terms of programs and phishing.

[Sim_card]

I would also like to add that you should always remember that you need to leave money for everyday expenses, because many investors make a mistake: they want to quickly accumulate more Bitcoins, and therefore allocate too much of their Fiat for buying at DCA, after which they do not have enough to live on. And they have to withdraw cryptocurrencies back into fiat, and such an approach partially ruins the idea of ​​measured and correct accumulation of digital gold.
It is also imperative not to forget about security in terms of programs and phishing.

This is one of the reason that a new investor should only buy bitcoin with hi discretionary income that he will not need for a very long time in order for him to be able to continue buying bitcoin weekly or monthly regularly and hodli for long with DCA method, persistently and consistently for 4-10 years and above. It is good that before buying bitcoin you should be able to figure out how much is your discretionary income first, so that you don't go and use part of the money for your monthly expenses and needs to buy bitcoin to avoid you from gambling thinking that you are investing.

It is also important for an investor to set up an emergency funds which is a back up to is bitcoin investment so that when a real emergency comes, he can use the money to take care of it, instead of selling his bitcoin to take care of an emergency.

cryptocurrencies

We are talking about bitcoin and not cryptocurrecy because using that word means that shitcoin is the same with bitcoin which can be misleading to newbies.

[Issa56]

I would also like to add that you should always remember that you need to leave money for everyday expenses, because many investors make a mistake: they want to quickly accumulate more Bitcoins, and therefore allocate too much of their Fiat for buying at DCA, after which they do not have enough to live on. And they have to withdraw cryptocurrencies back into fiat,

Lots of people do make this kind of mistake. When making investments, we are supposed to always have emergency funds, we shouldn’t invest everything we have, we should have money that will be used for daily activities and some amount that will serve as emergency funds. In case anything happens, you will be able to take from that to solve the problem without even touching your investment, but if you invest everything you have, you will end up selling when you are in need of money. Investing everything you have is not a sign that you are really serious with your investment, if you invest everything you have, you might end up selling most of it, and it might be at a loss.

[Moreno233]

Snip

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

That's the basic rule of investment, but somehow lots of people downplaying it since many think that high risk high reward. That mindset is somehow not recommendable since somehow we are tolerating those entities to take advantage with our wants to earn money. That's why aside from having guts to invest on a risky asset we must also be aware about the risk and any possible best decision to take to minimize the risk we might encounter thru the whole process of our investments.

Good thing bitcoin is here and reliable for long term, its just people need to have patience also knowledge so that they would able to know how to deal with this coin and find reliable ways like by using good strategies which is helpful for investor to have smooth ride with their investments.

I like how you added knowledge to your point because through knowledge one will know that the time of dips is not the time to panic rather a time to continuously buy more Bitcoin because then it is cheaper to get. Knowledge will enable one understand that the price will always recover when the time is right. It is those who lack experience that often panic when price is going down because they failed to realize that the price does not go in one direction forever, rather is also retraces to represent the general behaviors of the market participants. So, good knowledge of the market dynamics, price cycle, corrections and consolidation and the phases of the market and others are very important for the sustainability of the investment.

It is also a thing of knowledge for one to be able to know how to many the finances to be able to set aside the emergency funds as well as the money for daily needs if the investment is to be protected from sudden sell off. I learnt a lot here and that has changed my investment approach significantly.

[Stablexcoin]

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

That's the basic rule of investment, but somehow lots of people downplaying it since many think that high risk high reward. That mindset is somehow not recommendable since somehow we are tolerating those entities to take advantage with our wants to earn money. That's why aside from having guts to invest on a risky asset we must also be aware about the risk and any possible best decision to take to minimize the risk we might encounter thru the whole process of our investments.

Good thing bitcoin is here and reliable for long term, its just people need to have patience also knowledge so that they would able to know how to deal with this coin and find reliable ways like by using good strategies which is helpful for investor to have smooth ride with their investments.

Good thing that we have to ignore what others think about their investment as it is a personal decision. In every discussion I've heard about Bitcoin investment from my peers, I have heard that it is a risky asset and not profitable. Fuck what they think, if I have been keeping what they say in mind I wouldn't have started my investment and reach to this level.

Sure for a long-term benefit, Bitcoin is the best. People with delusions of high risk - high reward will perish because of knowledge. There is no easy way in and out of Bitcoin investment. If we want to be successful in it while investing we should focus and learn. Grasp every knowledge we can get, because it will be useful someday along our investment.

One thing I have noticed is that many are ignorant of quality information and helpful resources. Probably they may find out in the future that does discussion and conversation they had which they did not adapt would have been helpful.

It does not hurt to diversify investments after you have already reached decently large size of investments in bitcoin and cash, especially after you might have several years worth of expenses in bitcoin and/or cash. 

You're absolutely right here Jay. I have tried overlooking this but I need to air my opinion. Diversifying into other assets after accumulating a good amount of Bitcoin can help reduce risk rather than hurt our portfolio. In a situation where Bitcoin experiences a drop in rice, the other asset or business may perform better. having another asset to look up to will help create a balance. That asset may perform better during the market which will serve as the source to turn to instead of tapping into our Bitcoin.

[JayJuanGee]

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

No this is a wrong advise because if I know I will lose the money, I will never invest it! This statement sound like fud, a way of amplifying the risk in Bitcoin investment. Tell me, how do people lose money in Bitcoin investment? If you can be sincere with this answer, you will realize that most people who lose money in Bitcoin are those who invest today and are already looking to sell the next day; these are not investors but traders.

that's why it's called a basic concept because at the start, you have to invest what you can afford to loose which is more like another way of saying, Invest what you can afford to leave for long as though it's not your own. no one invest in an asset because they want to loose the amount they've invested. If that's the case, it will be practically impossible to continue investing when you've stacked up a good amount of Bitcoin. The analogy is only to help you invest and take your mind off any thought of selling untill you've reached your accumilation goal.

As an investor, you should know the risk involved in what you're investing into and even though we're certain that Bitcoin is not all that risky to the extent you can just loose all your investments without your knowledge or just suddenly, it's also good to acknowledge certain possibilities so while you're investing most expecially as an early investor, you try to invest an amount you won't need for a long time.

These are difficult concepts for many people to wrap our minds around, since you are correct Marvelockg that we are not investing into anything, including bitcoin with an expectations that we might lose or that we will lose everything, even though we should be investing with money that we don't necessarily need and that we are able to completely lose in the event that the investment were to go down or were to go to zero.. So we continuously should consider outside chances that BTC could end up going down and/or going to zero and we must be willing to accept that.

Part of the power of compounding value is that the most that we can lose is 100%, so the compounding effect is way greater on the way up as compared to on the way down. The compounding on the way up is nearly infinite (even though practically it is not exactly infinite though the value can continue to double and double and double and double for a very large quantity of times).  The compounding on the way down (might not even be exactly the right word) is that in total the most that can be lost is 100%, so we are starting with 100%, and so maybe each time that we lose 10% we get closer to zero, yet we might not completely ever run out if we keep losing 10% the number ends up getting really small, even if it might not ever completely go to zero...

On the way up, we could have many many times of continuing to gain 10% and our results could end up going way above 100%, and then we also could experience several periods of greater than 100% returns, and the value compounds in a much more exponential (and difficult to imagine) way on the way up as compared with on the way down, so when we invest into something like bitcoin we can continue to consider that the most that we could lose is 100%, but there are a lot of upside potentials that are not merely fantasies, yet they have historical precedent that includes bitcoin investment thesis rationals that are not getting any weaker today as compared to what they had been in the past, even though some of the slope of the upside likely has become less steep - while at the same time, bitcoin still reasonably has 30,000x potentials for upside that might not play out in the near-term and could even take 50 to 200 years or longer to play out, but those justifications to invest into bitcoin continue to exist, even if we might not understand many of the possible causal forces and even if we might have some difficulties understanding various aspects of the future...

Yet, we can still choose our BTC position size in such a way that gives us a certain level of comfort that we are ready, willing and able to account for both the upside and the downside and to accept the consequences based on how much we choose to ongoingly invest or even to keep inside of bitcoin without retaining ideas that ONLY the upside is possible or that with enough passage of time there is guarantees for up... Members here seem to frame their ideas all the time in terms of these ideas of guarantee, which is not the case.. even though there continue to be a lot of reasons to consider bitcoin to be a strong investment including having a lot of strong Lindy effects, too... which is that a longer a technical thing in bitcoin is in place the more likely it is going to continue to maintain itself and potentially grow with Metcalfe principles and networking effects (as outlined by Trace Mayer).

. Instead of this statement, let us try and put it the right way which is to encourage people to invest amount that can afford to hold for a some years like 4-10 years which is generally suggested in this thread. This also agree with the records that Bitcoin have been making a new ATH every 4 years which is seen as the market cycle of Bitcoin so any investment kept for at least 4 years is bound to generate profits other things being equal. 

I think I'm in agreement with this phrase of Investing what you can afford to hold for the long term because it actually speaks volume of the reputation Bitcoin has built over these years and likely, the notion of investing what you can afford to loose might have spring out in the early days of Bitcoin investment when people where skeptical about it. For now, it's mostly for altcoins and meme coin that you can mostly talk about investing what you can afford to loose since they still lack credibility to a large extent.

I don't know if it helps so suggest that invest what you can afford to lose ONLY applies to shitcoins, even though surely bitcoin has stronger fundamentals than shitcoins, so it is possible to actually invest into bitcoin, and I doubt that there are any shitcoins that you really could have confidence investing in them... even though some people do come to conclusions that shitcoins are worthy of investing into.. but seems problematic to consider any shitcoins as 10 year investments rather than something to get into and then to get out of.

4 years might be the completion of a circle but it's still not an end point to ones investment goal.

4 years seems to be the bare minimum to consider bitcoin as an investment rather than a trade.. and an investor can use 4 years only if they have some specific age or health considerations for not being able to invest longer... ..

To me, it seems that it would be problematic to even consider saving up for a house or to invest into something else to be an investment into bitcoin rather than a trade, even if the timeline might be longer, even though surely there could be ways to consider investing into bitcoin order to be able to leverage the bitcoin investment to start to purchase those various kinds of goods, services and other investments in the future, without necessarily planning to sell all of the bitcoin but instead figuring out ways to balance the bitcoin investment with other consumption and/or investment goals.. so then the bitcoin still ends up providing more options rather than planning to get in and out of it... absent some age and/or health considerations.. .. and of course, people are free to establish whatever their criteria might be in terms of thinking of bitcoin as an investment and reasons to sell it that might be goal based and may or may not account for timelines, which those ways of thinking about their bitcoin might not exactly fit investment frameworks rather than trading ideas.

At least, if you've invested for 4 years, you should have build an high level of maturity and knowledge about Bitcoin and deciding to leave you investment further than that will then come naturally because you've witnessed almost all the basic market conditions there is to Bitcoin investment.

Learning along the way is good in terms of both learning about bitcoin as an investment, and also we cannot necessarily assume that we are not learning about ourselves over the years in terms of our cashflow management and our psychology and various other parts of the 9 individual factors, besides just how bitcoin compares with other possible investments.

I would also like to add that you should always remember that you need to leave money for everyday expenses, because many investors make a mistake: they want to quickly accumulate more Bitcoins, and therefore allocate too much of their Fiat for buying at DCA, after which they do not have enough to live on. And they have to withdraw cryptocurrencies back into fiat, and such an approach partially ruins the idea of ​​measured and correct accumulation of digital gold.
It is also imperative not to forget about security in terms of programs and phishing.

This is one of the reason that a new investor should only buy bitcoin with hi discretionary income that he will not need for a very long time in order for him to be able to continue buying bitcoin weekly or monthly regularly and hodli for long with DCA method, persistently and consistently for 4-10 years and above. It is good that before buying bitcoin you should be able to figure out how much is your discretionary income first, so that you don't go and use part of the money for your monthly expenses and needs to buy bitcoin to avoid you from gambling thinking that you are investing.

Even though you are not technically incorrect, I don't really like your suggesting that we have to know our discretionary income first before investing into bitcoin and then to cause an impression that it should be really difficult to figure out whether or not we have a discretionary income. 

Sure, many normies suck when it comes to various aspects of cashflow management, even though an overwhelming majority of normies should have some general ideas about their discretionary income, so they would be able to get started buying bitcoin nearly right away with their general ideas about whether or not they have an extra $100 to buy bitcoin this week (and to keep that invested into bitcoin for 4-10 years or more).  Of course, the more aggressive that any of us is going to be with our bitcoin investment, then the more detail-oriented we are going to need to be in managing our cashflows and making sure that we don't make mistakes and perhaps that we have various cushions in case we make some mistakes.  We can learn a lot of those skills as we go, and likely we are going to need to learn those various kinds of skills as we go especially the more that we invest into bitcoin and potentially the more our bitcoin investment portfolio grows in value then we are going to need more skills to manage it and to make sure that we don't lose it or sell it too soon and/or to make sure that we are feeling financially and psychologically able to manage it.  We can learn matters (and probably we need to learn these matters) along the way rather than expecting that we need to know any of this in advance beyond just having some ballpark idea about whether we have an additional $100 that we are able to buy bitcoin with this week without expecting to get it out for 4-10 years or longer.

It is also important for an investor to set up an emergency funds which is a back up to is bitcoin investment so that when a real emergency comes, he can use the money to take care of it, instead of selling his bitcoin to take care of an emergency.

Emergency funds (and other forms of back up funds and honing various aspects of cash flow management) does not need to be established prior to getting started beyond merely having some basic ideas about whether the newbie BTC investor has extra money to buy BTC and to hold for 4-10 years or longer or not.

cryptocurrencies

We are talking about bitcoin and not cryptocurrecy because using that word means that shitcoin is the same with bitcoin which can be misleading to newbies.

Good point.  Hopefully no one is fucking around with shitcoins or talking about shitcoins in this thread, and if there were some intention to talk about bitcoin, then the word bitcoin should have had been used rather than using a vague, misleading and perhaps disingenuine word such as cryptocurrency.

[Justbillywitt]

Talking about diversification, I'll rather diversify to another investment than investing in other Cryptocurrencies asides Bitcoin, at least one could still use some portion of the profits from other investments like Real Estate, Commodities to continue building their Bitcoin Portfolio.

If we check the performance of bitcoin over the last decade, you will notice that bitcoin is the most performing asset in terms of ROI. Bitcoin has given a better return than real estate or any other investment that you will think of. Sometimes when I hear people say that they want to take profit from their bitcoin investment and diversify to other investment it baffles me. Does it really make any sense that you are disposing the most performing asset to diversify to other things that can't give you half of what bitcoin will give you if you continue holding bitcoin.

 I will rather stick with bitcoin than diversify to any other investment. As an investor if you think you have gotten enough bitcoin that's enough for you at the moment. It will be best to stack up cash, as diversification. with your bitcoin and cash deposit you are far better off than diversifying to real estate or anything else.

It does not hurt to diversify investments after you have already reached decently large size of investments in bitcoin and cash, especially after you might have several years worth of expenses in bitcoin and/or cash. 

Diversification is a discretionary matter, and it becomes more justifiable the larger your investment portfolio becomes.

When you are first investing, and maybe even the first 4-10 years or more,  you might not need to diversify since you are still in the early stages of building your investment, and maybe after 4-10 years or more you start to get to a point of having 1 year or more worth of expenses invested into bitcoin, and if bitcoin had appreciated in price too, then you might have even more years of your expenses in bitcoin and cash, and at that point it seems to make sense to put value into other areas, such as stocks, bonds, properties, commodities and perhaps other areas, and again surely discretionary regarding how to allocate, reallocate or into what to diversify in the even that you want money in various areas and also you might also want your money to be working for you rather than the portion in cash might not be working for you and so once you have even 6-12 months of your investment in cash, you may well want some of that to be working for you, since maybe if you have an emergency you might only need 3-6 months of it, and even if you need more months, you would not necessarily need to access those funds right away but instead several months down the road so some extra funds could be tied up or invested in various other areas in which you would spend your other investments prior to spending your bitcoin.. .

Not easy answers and can become more complicated to generalize how to deal with such situations when the situations of people will likely end up varying after they start to accumulate more assets/investment and wealth and different ways to deal with volatility of bitcoin and even volatility of a variety of markets.

So when we frequently talk about diversification for the mere sake of diversification as dumb, it especially applies to newbie investors who may well be getting distracted by ideas of diversification when it is not needed in the early stages, but diversification does start to make more sense after accumulating more wealth.. even though it is still quite discretionary and varied in the ways that any bitcoiner might end up diversifying... including that there are some bitcoiners who come brand new into bitcoin, but they had already had various other investments in other assets (so they might come to bitcoin already largely diversified), so they are in a different position if they either already have a diversified portfolio or if they come to bitcoin and they have a lot of wealth, then they have more options in which diversification might be one of their considerations, which might not make much if any sense for most newbies who might be DCAing into bitcoin and don't even have very much already accumulated wealth.

I think it makes more sense the way you have explained it. Because often times I have seen and heard new investors that are just starting life and are new to bitcoin investment talks about diversification. Not that they have amassed so much wealth or have spent a reasonable number of years in accumulating bitcoin. But you see them talking about diversification. Of course if an investor who have spent the number of years as you mentioned above and has accumulated enough wealth and bitcoin wants to diversify I don't see anything wrong with that as well. My initial stand was for new investors who are still starting life and hasn't really achieved much in bitcoin and cash deposit who often talks about diversification. I should have mentioned of this in my first post, so that anyone who read it will a clue of class of investors I was making references to. It's my fault I left the post open, without narrowing it down to new investors who are just starting life in bitcoin investment and haven't gotten any wealth prior to investing in bitcoin. I totally understand everything you said and it's makes sense.

[Mayor of ogba]

if you said our focus is to buy Dip and the market haven't that means we won't buy Bitcoin right? perhaps our focus should be accumulating and holding regardless of the market price which is the DCA method or strategy.

If you are using DCA strategy for investing then why wait for dip period like a fool. Buying Dip may not be easy for those who are just starting Bitcoin investment i.e. new investors. Also, waiting for a dip period in the market is also unwise, there are some investors whose main goal is to buy bitcoins during the dip period i.e. they want to buy more bitcoins at low prices. But the time they wait for does not happen in the regular market and hence they are not able to invest. But they had ample opportunity to buy bitcoins at any given moment in the market.

Dips are unpredictable, so instead of waiting for this period to invest, one should set a fixed source of income and prepare to buy bitcoins immediately i.e. buy bitcoins continuously and prepare to prolong Holding. By buying Bitcoin regularly you can take advantage of any time in any market.

In fact, those who wait to buy dips are always missing out on good market opportunities because the times they may have been waiting for never come. Market ups and downs are often unpredictable, and we may not be able to buy precisely at the moment a dip occurs.

We have gained a lot of knowledge about bitcoin investment in this thread, and we now know the strategies to combine together that will allow us to consistently be accumulating bitcoin and also wait for bitcoin dip to happen so that we can buy the dip and also increase the size of our bitcoin investment. For instance, if you want to wait for the bitcoin dip so that you can accumulate some of your bitcoin at a low price, you can divide your bitcoin accumulation money into two equal parts, and you will keep one part for buying the bitcoin dip any time it happens, and you will use the second part to be consistently accumulating bitcoin with the DCA strategy, which will allow you to take advantage of the market and also make you not miss out on bitcoin investment. Investors who only want to accumulate bitcoin in a dip are the ones who will miss out on bitcoin investment because they are not certain if bitcoin will dip to where they will be comfortable accumulating it. This will make them less active in accumulating bitcoin, and the chance of not accumulating a good amount of bitcoin is very high because no one is certain how often the bitcoin dip will happen each year.

[inearth]

I have decided to invest in Bitcoin, I know about DCA and DCA's feasibility, and I have gained a rough understanding of Bitcoin and Crypto. But I still don't know much about them. But I decided to start investing in Bitcoin. And in DCA I will continue to invest and slowly learn everything about crypto. Hopefully I can move forward in this way.

[cryptoWODL]

I have decided to invest in Bitcoin, I know about DCA and DCA's feasibility, and I have gained a rough understanding of Bitcoin and Crypto. But I still don't know much about them. But I decided to start investing in Bitcoin. And in DCA I will continue to invest and slowly learn everything about crypto. Hopefully I can move forward in this way.

I respect your decision. You mentioned that having gained a rough understanding of Bitcoin and Crypto, maybe you can start investing with the DCA approach. Because to invest in this method you don't need to know any details about bitcoins only you can start investing with little knowledge and definite source of income. By regularly buying bitcoins you will gain experience with investing and your investment will grow as well.

If you spend a few days here in the thread you posted you will surely understand the details about investing in DCA method. There are constant discussions about the DCA strategy which is making many new investors experienced in their investments which is helping them to prolong their investment journey.

If you want to learn about Dollar Cost Averaging investment method in a short period of time then spending some time visiting this link will help you to increase your knowledge.

https://www.britannica.com/money/dollar-cost-averaging

[GIF-JOBS]

I have decided to invest in Bitcoin, I know about DCA and DCA's feasibility, and I have gained a rough understanding of Bitcoin and Crypto. But I still don't know much about them. But I decided to start investing in Bitcoin. And in DCA I will continue to invest and slowly learn everything about crypto. Hopefully I can move forward in this way.

Just to invest in Bitcoin, we don't need to have complete knowledge about Bitcoin, we can start investing only if we know the basics.

Preliminary planning is always very important before starting a new investment. A novice should take firm decision before starting investment, he should not think about profit, his plan should always be long term. If a new investor makes a proper plan and believes in the future potential of Bitcoin and buys Bitcoin for a long period of time, then he can definitely make a profit in the future.

But before you start investing, you must pay attention to your financial management. You need to create a strong source of income.

There are times in our life when our monthly expenses are higher than usual, i.e. during inflation, our expenses will increase due to inflation or extra expenses, at this time, you will reduce the amount you use to buy bitcoins in that particular month. But you have to keep in mind that time so that your investment does not stop at once. You need to continue investing, if your cost is low, you can increase the amount of Bitcoin investment, and if the cost increases, you can reduce the investment amount, but in no way can you stop investing in DCA.

And I think an investor must have a reserve fund and emergency fund before starting investment, so that his investment does not stop in any way.

That is, in any unexpected situation, you can handle that situation with that emergency fund.

Definitely plan DCA long term, if you manage DCA properly we can slowly build our bitcoin stash. A "hodley" or long-term investment attitude is the key to success from DCA.