Yes investing in bitcoin without having a backup funds like emergency funds can turn into gambling because if an unforeseen contingency should arise the only place to fall back to will be our bitcoin holdings. Hence there is need for a backup funds that should act as a safety net incase of any unforeseen circumstances should arise as it will always.
Consistent and patients are two great factors in building up a good portfolio in bitcoin. Since we are all aiming to have a reasonable amount of stash in our holdings,it is not possible to accumulate all the bitcoins we plan to have in our holdings a day but by consistently buying bitcoin we will be able to accumulate a reasonable amount of bitcoin over time.
In general everyone
must have an emergency fund when they want to invest in Bitcoin because one of the best security measures is to have an emergency fund so that things that happen beyond our expectations will certainly be resolved according to our expectations.
And moreover we don't really want such things to happen but this is also to avoid things from becoming part of life when investing especially since investing requires sufficient consistency in building our Bitcoin portfolio to run well that's what someone who has a goal of investing in Bitcoin must do according to basic planning so that Bitcoin ownership will always be protected by
buying Bitcoin consistently from time to time with another reason being that security is our first wall in collecting the number of Bitcoins according to our basic plan as the owner.
Newbies don't need to have an emergency fund in place prior to getting started. As long as they have discretionary funds, they can start from where they are at and determine how much to put into bitcoin, and build their back up funds as they go.
Newbies also don't need to invest in bitcoin consistently, and they can choose their level of investing, their frequency, their level of priority they are giving to bitcoin, even though surely they are going to be able to build a better bitcoin holdings if they prioritize it.
Another thing with DCA investing is that a guy can set his DCA towards whatever level of aggressiveness and/or frequency that he wants.. including the extent to which he might build up back up funds as he goes and how much priority he might give to bitcoin as compared with back up funds and/or discretionary consumption.
I am not very excited about the idea of framing investing in terms of profits, since guys can have goals in regards to their investing into bitcoin beyond merely thinking in terms of profits. Profits seems to be a trader's way of framing matters, and it seems an incomplete way of framing why people are in bitcoin.
I agree with you. Some investors do not invest in Bitcoin for profit, although the main point of the explanation is to make a profit.
We do not need to emphasize profits when we are in the early stages of building our bitcoin holdings, and it can be distracting to focus on profits, since we are hopefully talking about investing - not trading.
Discretionary income and DCA method are good strategies to perfect the mental and physical preparation and actions you need to take before reaching the profit stage.
I think your use of profits is distracting.
I frequently describe bitcoin investing in terms of three stages 1) accumulation, 2) maintenance and 3) liquidation (or sustainable withdrawal)
Sure, sometimes the stages might overlap... but the early years accumulation would mostly be done through ongoing buying and holding.
Since the period of my campaign, I have not felt the need to withdraw Bitcoin yet because I expect to accumulate two or three cycles of Bitcoin and accumulate additional Bitcoin sat. This will be possible only if the investors have the financial capacity. As you have been involved in Bitcoin accumulation for a long time and your overall preparation is at a good level, you are not considering Bitcoin only in terms of profit. For some new or poor investors the objective may be different.
There is no need to agree to the framework of a new investor if they might not even know what investing is. What is the point about profit that you believe needs to be addressed?
If we might talk about goals that guy might have, are they going to buy bitcoin and then sell it all? Maybe I would consider that to be trading rather than investing? I don't consider that to be very fruitful to be discussing those kinds of ideas.
In the end, guys can do what they like, but I don't have to agree to their framework. Maybe you want to give some example? Why do you want to sell your bitcoin?
Profit may be considered the real objective of a trader's mentality. When they realize that trading is an incomplete matter, they sacrifice their expectations of making a profit and start accumulation Bitcoin regularly to reach their long term goals.
So you think that investing in bitcoin is merely a long term trade? I don't consider that to be helpful, even though you can do what you like. You are going to build up your bitcoin stash, and then you are going to transfer your bitcoin into something else? A house? or something else?
There may well be a lot of reasons that governments are responsible to identify the public good and to carry out policies that are in the public good, yet it seems that so many times they get distracted from their duties, and also perhaps various government systems have put governments in states of desperation, which might not have had even been completely of their own causing, yet they also might feel that they are ready or able to carry out policies in the public interest because they might consider the public interest to be contrary to their own self-preservation concerns, which seems to inevitably lead them to monitoring, controlling and/or manipulating the public - whether through monetary policies and/or even free transactional and/or free communication matters.. .which is too bad, and surely some areas of our lives are more under attack than other areas.. which is also too bad.
The individual government official I believe can be good. The policeman, the fireman, the postman, the clerk helping you fill out an application.
Even their bosses might be good, watching the crowd and trying to help out.
But their bosses' bosses, and the structures that are the status quo, these are not good. They keep 'good' departments and policies to hide or sustain the bad ones. And maybe, at some point, it becomes normalized that it does not to them seem bad as they do not feel, or do not even see the consequences being too high up in the structure. Or choose to avoid ever being in situations to feel or see.
There are likely a lot of good people in government and even in business and not always recognizing some of the problems of some of they systems that they are working within, to the extent that we have problematic money and debt backing up some of the systems. I doubt that we can resolve any of those kinds of matters, even though in the context of KYC laws that end up containing a lot of monitoring and control mechanisms.. that likely are framed to be in the "public good." There are all kinds of injustices in the world, and seems to a bit of a distraction to go down that path, even though if we might be investing in bitcoin, there may be some personal empowerment component that we might identify within bitcoin (beyond number go up) that might motivate part of our involvement in it.
This is a fantastic thread that timelessly captures the beginner's dilemma, however, I think we often overlook the psychological endurance required for DCA, everyone says "just buy and hold" but no one prepares a beginner for the mental toll of a 70% portfolio drop during a brutal bear market, or the temptation to gamble on the next shiny altcoin when Bitcoin seems "boring", perhaps true Bitcoin literacy isn't just about understanding self-custody or node operation, but about mastering our own financial psychology, I would love to hear from the veterans here about the specific mental frameworks or strict rules they use to prevent panic selling or FOMO buying during extreme market volatility.
Beginners don't need to think about price and they can just think about building their holdings, whether it is $100 per week, $10 per week or some other amount, and surely it might take them 4-10 years or longer to build up their bitcoin holdings unless they are able to front load their bitcoin investment.
Surely some newbies come to bitcoin as their first investment, and others might come to bitcoin when they already have other investments that they may or may not decide to move into bitcoin.
Have you started investing in bitcoin yet, hueeana? or are you merely asking about theories?
From my perspective (which is the topic of this thread) Bitcoin investment deals with the bitcoin buying part, but also the cashflow management building part, too. Individual Psychology will likely become stronger if we are attempting to put good systems in place and we are attempting to build and reinforce good systems, whether it is ongoing bitcoin buying during our building stages and/or the building and strengthening of our cashflow management systems/practices, which likely also involves building up back up funds, and we likely can build up our bitcoin and investment and our back up funds at the same time, provided that we have discretionary funds, which is a prerequisite to bitcoin investing.
We are not talking about shitcoins and/or trading in this thread, even though surely I tend to suggest that guys stay away from both of those, but if they cannot resist their temptation to trade or to get involved in shitcoins, then they should limit their time, energy and/or value to less than 10% of their bitcoin involvement. In the end, guys can do what they like, yet they might need to go to some other thread if they are interested in shitcoins and/or trading.
This is a fantastic thread that timelessly captures the beginner's dilemma, however, I think we often overlook the psychological endurance required for DCA, everyone says "just buy and hold" but no one prepares a beginner for the mental toll of a 70% portfolio drop during a brutal bear market, or the temptation to gamble on the next shiny altcoin when Bitcoin seems "boring", perhaps true Bitcoin literacy isn't just about understanding self-custody or node operation, but about mastering our own financial psychology, I would love to hear from the veterans here about the specific mental frameworks or strict rules they use to prevent panic selling or FOMO buying during extreme market volatility.
Building trust in Bitcoin is very important. Trust plays the biggest role in maintaining your holdings in the long term. Because if we do not have trust in a thing or a person, then we will never value any words or other actions of that person. Similarly, if you cannot build trust in Bitcoin, then you will never be able to hold it in the long term, when you see a decline in the market, you may panic and sell your holdings.
I am not sure about this trust idea Gost ms. Why can't we just adjust our position size to the level of our comfort. So maybe in the beginning we are skeptical and uncomfortable, so we purposefully invest much more conservatively, but as our confidence and comfort increases, we feel that we can put more into bitcoin.
A person who is in this situation should, at first, start investing with a small amount of money through basic knowledge and discretionary income. When a person continues to buy with a small amount of money continuously and sees the market volatility and the market recovering again, he will be able to build complete trust in Bitcoin. When he is able to build trust in Bitcoin, he can increase the level of investment according to his ability
Ok. Maybe this part addresses my concern - even though this idea of building trust seems problematic. Many times we may well be adjusting our level of investment into bitcoin based on our own cashflow situation and controling the areas that we can control, which includes deciding how much we are ready, willing and/or able to put into bitcoin on a weekly basis (or whatever might be our investment interval?).
