JJG’s Outline of Bitcoin Investment Ideas

[Female King]

Here the most important thing is seriousness even if we don't know about the basics from the start but when we already feel buying then inevitably we will learn about it from the beginning and that's what I felt before.
So it's good if we know at least the basics before we start but that's not the starting point because I think we can even buy and learn as we continue to buy and this is what happened to me now.

Knowing the basics is not necessary because it can't stop you from investing. When you wait to learn the basics you are already wasting time and missing opportunities already.
There's really no reason to wait until you learn the basics. If you have been following up this thread you would have learned that the basics are clearly what our common sense can do and it's something you can still learn after starting your investment.

If you have discretionary income available after you have taken care of your expenses then you should not hesitate to invest. The only reason you have to not invest immediately is if you don't have discretionary income ready. We can always learn as we carry on our investment.

Knowing the basics about bitcoin is good but doesn't prevent someone not to invest, more over its not something that will not take time to know as a serious person will use just a day to know the basics about bitcoin investment, it's when you are trying to know more before starting when your discretionary income is available that isn't necessary because you won't still know all about bitcoin unless you first get started before you can understand more about bitcoin and such person who is waiting to know more is already missing out on some good buying time so for those who not in this community following up this thread actually need some basic knowledge before getting started because i believe that some one with zero knowledge about bitcoin will make some mistakes about the right wallet to use and also the strategy to use when buying bitcoin.

[Rockstarguy]

So, you believe that a newbie is required to learn about private wallets and to learn about (and accept) the value of self-custody prior to getting started investing in bitcoin?

I know most newbies don't even care about the wallet because they don't understand the importance of a self-custodial wallet or the risks of using an exchange wallet. But as we encourage newbies to understand how to invest in Bitcoin, I think it is also important for them to understand the wallet they need for investment and not to consider every wallet to be safe for investment, such as the exchange wallet.

I know newbies are more interested in buying Bitcoin to invest but don't know where to invest in Bitcoin. When newbies don't even understand how important wallets are, they can just conclude that they can invest in any wallet without knowing if it is even a scam custodial wallet.

[Big Dirams]

Therefore it would be wise to create at a 3-month backup fund without touching Bitcoin. This way you can invest in Bitcoin with a safety net.

How long do you think it takes a guy to build up a 3 month back up fund in fiat?  How does he balance his back up funds with his bitcoin buying?

What if a guy comes to learning about bitcoin and he wants to get started, and he knows that he has discretionary funds, yet he does not have any back up funds, how should such a guy proceed, from your point of view?  How much back up funds do you believe he needs before getting started buying bitcoin, and then once he gets started buying bitcoin should he continue to build his back up funds or not?  And then what happens once his back up funds are at a level of 3 months of his expenses?  Where is his bitcoin investment at such a time?  Presumptively the bitcoin is more volatile that the fiat in which his back up funds are kept.

Many people especially beginners misunderstand the concept of Bitcoin investment they get it all wrong by thinking they need to wait to fully build their back up fund first before they start investing. But in reality stacking both Bitcoin and building a back up should be done together because they both work together and not against each other but with different priorities.

And it's true the time it takes to build your emergency fund varies among individuals because it depends on the person's income, expenses debts and personal discipline. All these things varies among individuals so building a 3 month emergency funds might take different individuals different time. Your emergency fund is quite important because it gives you stability, but it shouldn’t completely stop you from investing because accumulating Bitcoin is always the main goal and always the top priority and it can be done gradually while you’re building your emergency funds.

Well that is true.  A guy could have such messed up finances that he is not really in a position to really determine that he has a sufficient amount of discretionary funds available to get started buying bitcoin, and availability of back up funds could be a part of that assessment, and it is hard to recognize any circumstances in which it would be justified to invest in bitcoin if there aren't any back up funds, unless the paycheck is coming the next day, and even then it could be risky, since paychecks sometimes do not come when they are expected to come.

Right you made a good point, at times it really hard to tell if one has a back up funds especially when the finance is totally complicated.
Well getting our finances sort out and paying up some complicated debt that might tends to obstruct some opportunities during bitcoin accumulation is a very positive way before we can start our journey, at least we can easily make availability for our discretionary income before start and if possible our emergency funds too but that not very much necessary as discretionary funds. 
 And true talk too paycheck sometimes gets delayed or maybe at times they don’t even fall in place so risking it is not really worth it. But when there is assurance for the paycheck then that a positive one.

[Comeacross]

Well that is true.  A guy could have such messed up finances that he is not really in a position to really determine that he has a sufficient amount of discretionary funds available to get started buying bitcoin, and availability of back up funds could be a part of that assessment, and it is hard to recognize any circumstances in which it would be justified to invest in bitcoin if there aren't any back up funds, unless the paycheck is coming the next day, and even then it could be risky, since paychecks sometimes do not come when they are expected to come.

The truth is back up funds are not even optional because it create discretionary funds. The more we dwell on this, the more it justify the need to invest with discretionary funds. Even with regular paycheck, it sometimes delay for one reason or another. If for instance, your investment in BTC today means you can't eat tomorrow if your pay is delay, then you are just gambling not investing. There are things you need to put in order even if you don't have up to 6 months expenses. You need to ensure your bill for the current cycle is covered. At least small buffer is necessary but most importantly, stable income is a must.

[red4slash]

• Building a 4-week emergency fund and starting to invest protects the portfolio from sudden market fluctuations, such as a 20-30% drop in a single day.
• It gives the investor peace of mind. This reduces the tendency to make wrong decisions.

However real-world experience suggests that 4 weeks of funds are not enough for a high-risk asset like Bitcoin. If you enter bitcoin with at least 3 to 6 months of living expenses saved up you may have to sell bitcoin at a loss in the event of a major personal emergency, such, as job loss or medical expenses.

Therefore it would be wise to create at a 3-month backup fund without touching Bitcoin. This way you can invest in Bitcoin with a safety net.

I think the first point is not really necessary if you really want to invest because in this case buying bitcoin will have nothing to do with your emergency fund (unless you are too naive to make an emergency fund as a fund to buy bitcoin).

In addition, delaying the purchase even up to 3/6 months just because you want to secure the reserve fund is also too passive because we have another option here by buying bitcoin but still by securing the reserve fund at the same time.
If you delay 3 even up to 6 months indirectly it is your bitcoin purchase that is hampered and this is clearly not a wise choice because honestly the longer you wait for a purchase, the more hesitant you are to buy because every time you want to buy, there are always considerations that become reasons that make you not buy and continue to wait.

[Rabata]

So, you believe that a newbie is required to learn about private wallets and to learn about (and accept) the value of self-custody prior to getting started investing in bitcoin?

I know most newbies don't even care about the wallet because they don't understand the importance of a self-custodial wallet or the risks of using an exchange wallet. But as we encourage newbies to understand how to invest in Bitcoin, I think it is also important for them to understand the wallet they need for investment and not to consider every wallet to be safe for investment, such as the exchange wallet.

I know newbies are more interested in buying Bitcoin to invest but don't know where to invest in Bitcoin. When newbies don't even understand how important wallets are, they can just conclude that they can invest in any wallet without knowing if it is even a scam custodial wallet.

I agree with your statement that it is necessary to know about self-custody and exchange risks to hold Bitcoin in the long term. But you presented the issue in such a way that beginners need to know these things before starting Bitcoin, which seems to be a mandatory condition for starting to invest. In reality, it is not mandatory for beginners to learn about wallet security and self-custody before starting. Rather, it is just an excuse to delay or not start investing. What is needed at the beginning of investing is whether there is extra income. If someone has extra income, then there is no obstacle to starting. Another thing is that holding a large amount of Bitcoin on an exchange for a long time is one thing, and using an exchange to start with a small amount at the learning stage is a completely different thing. Do not confuse the two. If someone wants to start with a small amount and is not yet fully aware of wallets, then starting with an exchange is not a bad thing for him. He can use the exchange until he is completely ready about his security. When he is sure about his security, he will bring it to his wallet.

[Finebone]

At least small buffer is necessary but most importantly, stable income is a must.

I don't know why most of us here are not getting the point here that a stable income is not a must for you to invest in bitcoin and be successful at it. What is more important is a discretionary income, because a stable income doesn't guarantee that you can figure out your discretionary income.
I am not saying that it's not good to have a stable income, but what am trying to point out here is that it's not the key criteria a bitcoin investor must have in other to invest in bitcoin and be successful, because the key thing that is needed is a discretionary income, and once you can figure it out, starting your Bitcoin investment should be done right away without wasting any time further.

[Obulis]

If a person has an income of $30k per year and he decides to invest $100 per week into bitcoin (17.3%), then maybe after 5 years he had invested $26k into bitcoin, and if bitcoin suddenly goes up 5x to be worth $130k in a fairly short period of time, the guy might not know how to deal with that situation.  Is he going to keep buying bitcoin?  Stop buying bitcoin? Or is he going to be tempted to sell some of his bitcoin?

Maybe he never had any investment that was worth that much money, so he has to learn how to deal with having that money and knowing that the price is volatile and that he can sell the bitcoin at any time that he wants.  Building up a habit of ongoingly buying bitcoin can help in these circumstances, but also building up back up funds can help in these types of circumstances, too.
 .

That absolutely a high percentage of bitcoin returns that comes after constant accumulation of bitcoin for over 5years. But I’m a bit loss right now so what should be the investors decisions here or does it totally comes down to the investors to decide on what to do with the bitcoin or is there any positive way to approach a situation like this.
I’m just so curious because with high amount of bitcoin like this then such investors would be totally confused so what should be his decision here. Keeping up with more accumulation? Or selling off all his holdings? Or even maybe selling some and securing it what should be the decision here @JayJuanGee.

Well I came up with a suggestion don’t know if it suit well but just an opinion though.
What if the investors reduces his or her weekly budget for the constant accumulation, so it would reduced the risk a little bit afterall the holder has made so much from the journey. Reducing their monthly or weekly budget would be a smart one to reduce the risk even if the budget is been reduced by 60% or more  

The temptation is very loud and serious. To start with, this investor income is $2500 (30k ÷ 12) and that explains of the investors level of livelihood, under such glorious alarm of financial gain the temptation to change lifestyle would be the leading drive for many investors, the joy of having a amount of dollars in the bank that they have never had before definitely would be so high to the extend of even thinking of acquisition of somethings they only dreamt (that's by selling off their Bitcoin holding). But some will likely sell off there invested amount ($26k) to take another venture (business, children education, skill acquisition etc depending) and continue there weekly investment from there income and I think that's is the mistake I would like to make if I am under such circumstances.

[The Founding Titan]

Bitcoin is a highly valuable asset today because it has significant potential to offer benefits to those who approach it. It's perfectly natural for us to invest more money in investments that benefit us personally. However this also depends on our individual mindset. Not everyone wants to invest in Bitcoin. Some people may not believe in the guarantee of returns so Bitcoin investment is only for certain individuals who understand the ins and outs of investing. Once invested a clear mindset is essential to confidently pursue the long-term investment. This doesn't mean you can't invest in the short term but investing in Bitcoin over the long term is more structured and focused in achieving results. Some people find it difficult to believe in Bitcoin investments so everyone's mindset is different.

Our real task is to continue investing in Bitcoin without thinking about the results. If we place too much hope in what we want when the peak doesn't match our expectations we may always panic about investing in Bitcoin and ultimately no one will invest again because of the frequent failures in achieving profits.
One way to simply persevere in investing, especially long-term investing requires us to focus solely on waiting. The long term is not a short time. However with a mindset of waiting for results one must have patience so that our desire to invest is solely for profit. Although many may be skeptical we must have confidence in investing in Bitcoin. This is the mindset of someone who invests in Bitcoin without thinking about profits.

Yeah, I get what you mean buddy @cyberninja2, and you’re not far off at all. You see bitcoin really just isn’t the kind of thing that rewards impatience, and the reason why is because it moves in waves you know, like big runs, big drops and that alone can mess with people who expect it to always be steady.
Now most people don’t actually struggle in their investment just because Bitcoin doesn’t work or something, but because the ups and downs has quickly gotten to them and now they get in with high expectations, then panic when things dip and end up reacting at the worst time. Perhaps what tends to work better is keeping it simple and consistent instead of overthinking every move or trying to time everything perfectly, that way, you’re not constantly stressed by every price swing all the time.

I think this comes from the rush people have to get rich quickly from something they are doing and when most people see the current value of bitcoin they see as a quick card to get out of poverty but they fail to realize that it is not free manna from heaven that's just falling down for them to pick up, you can't have that much bitcoin in the blink of an eye and the price swing isn't dramatic enough for a person to grow from 1 BTC to 5 over night, this is the kind of promise alot of shitcoins make even when they can't keep it and it pushes people into thinking that bitcoin is the same way when it isn't, this misguided hope to become impossibly rich overnight is what leads to excessive panic when the price drops instead and they end up selling, reality shatters their false hope.

[Zackz5000]

Well that is true.  A guy could have such messed up finances that he is not really in a position to really determine that he has a sufficient amount of discretionary funds available to get started buying bitcoin, and availability of back up funds could be a part of that assessment, and it is hard to recognize any circumstances in which it would be justified to invest in bitcoin if there aren't any back up funds, unless the paycheck is coming the next day, and even then it could be risky, since paychecks sometimes do not come when they are expected to come.

The truth is back up funds are not even optional because it create discretionary funds. The more we dwell on this, the more it justify the need to invest with discretionary funds. Even with regular paycheck, it sometimes delay for one reason or another. If for instance, your investment in BTC today means you can't eat tomorrow if your pay is delay, then you are just gambling not investing. There are things you need to put in order even if you don't have up to 6 months expenses. You need to ensure your bill for the current cycle is covered. At least small buffer is necessary but most importantly, stable income is a must.

Investing in Bitcoin doesn't mean you will be accumulating Bitcoin all the time even when you don't have your discretionary income, you accumulate when you see that you have a discretionary income the day you don't have discretionary income you continue to hodl the one you have accumulated and sort out your basic needs first until you have your discretionary income.

Stable income is not a must for some one to get started with their Bitcoin investment if this is true somany investors now that is doing well wouldn't have started this journey, your income can still be unstable and still be accumulating Bitcoin what is important is having your discretionary income and while accumulating you can also be planning on how to increase your cash flow so that you will have more sufficient income to keep you accumulating more Bitcoin consistently and hodl for long, if you wait to have a stable income you may not get started and you will also be missing more good opportunity to accumulate so what is needed to get started with your Bitcoin investment is your discretionary income and not waiting to have a stable income first.