JJG’s Outline of Bitcoin Investment Ideas

[Creeper0]

I cannot agree with you on this. Because it is very natural for a new person to be afraid. Whether a person uses discretionary money or uses the required amount of money, if he does not have faith in it, he will definitely be afraid and sell his holdings. If a person has faith in it that Bitcoin will recover again and if he has strong faith in Bitcoin, he will not be afraid.

Being afraid is not a big deal but deciding to sell his holdings out of fear is the biggest stupid decision. Initially, a person needs to build up so much faith in Bitcoin that he does not sell his holdings during the decline. Gradually, when a person starts facing market volatility and is able to build more strong faith in the market, he will definitely not sell his holdings out of fear.

It is possible that newbies may be afraid. But I don't think that fear can be overcome by simply believing in Bitcoin. You can still be forced to sell even if you have enough faith in the long-term potential of Bitcoin if you are investing money that you might need in a few months. Again, a new investor may be afraid of Bitcoin, but if he buys in small amounts that he can afford, he may find it relatively easy to hold on to it even if the market falls significantly.

How much fear affects your savings probably depends on the size of your investments, your discretionary income, your emergency fund, and your time horizon.

My question is, how long can you remain calm in the belief that if you buy more with the money you need, then the donations will just keep growing?

See, just as patience is needed to succeed in investing, so is faith in Bitcoin, just as faith is needed to take the right steps. To succeed in Bitcoin, you cannot leave out any one thing, otherwise the investment will become risky.

Even after investing more than your capacity with faith in Bitcoin, someone may be able to refrain from panicking, but when the market falls in a time of need or emergency, you will have to face it. There is a big difference between courage and loss. Faith may help you overcome fear, but you will definitely have to suffer the consequences of wrong steps. Even if you invest with the necessary money, there is no guarantee that your funds will be profitable when needed.

Finally, I would advise you(@Primark) to read the post of the person you quoted carefully and try to understand what he meant. He did not say what you mentioned.

[SmartCharpa]

lol, I never though of Bitcoin as a religion to have much faith in first before a guy can get started in his investment base on how faith is defined, let’s assume a newbie has faith in Bitcoin that it’ll turn the way his faith has lead him to believe, and it doesn’t work out that way, what will be of his faith then. . If the newbie want, let him be overly religious  with Bitcoin, Bitcoin will still do it thing whenever it wants. Realistically speaking, a guy doesn’t believe or have conviction in a thing, until he has either tried it out or heard the other persons talk about it. But in this case, it’s best you start already with your discretionary fund and grow your conviction in Bitcoin as you go. In the stead of waiting until God knows when your conviction will get to a satisfactory level.

In my opinion having faith in bitcoin is understanding and believing that bitcoin is something we can rely on and hope on because it has proven itself to be a reliable projects with great potentials and it has proven it self many years to be something worth giving a shot. 
And however the transparency of bitcoin on how transactions are made publicly and how it isn’t an individual projects or a project govern by the government then we should have faith in it but still that doesn’t mean bitcoin can’t go for dips or highs just because we have faith in it.
The price movement of bitcoin is govern by many factors but mainly on supplies and demands so you talking about faith in religious way isn’t applicable to this at all.

Only those who don’t want to believe in Bitcoin will be the ones to doubt it, otherwise Bitcoin itself has proved itself for over a decade now. I don’t know why some people are still having negative views about it. Bitcoin is something that you and I do not have any power over, so we don’t know what the future holds. Everyone investing for the long term believes that it will be more profitable in the future than what we are seeing now because of the history it has made.

Of course, changes in price are a normal thing to happen. believing in its future value does not mean the price is not going to fall, we are going to experience dips as well because they are also part of the journey. even though a newbie believe that Bitcoin will be much greater in the future and later it does not turn out the way they expected, there is nothing they can do because right from the beginning they knew that risk is also involved.

[Rabata]

I know some people can be very emotional but the best to thing do first is to try not to use money outside your discrestionary income to invest in Bitcoin because you will definitely be emotional when the price is going down and you will be tempted to touch it even if you are  a long term holder or investor. This is a mistake some people make in their investment journey but that is why basic knowledge is good because you will get to know understand these before starting your investment.

In this current situation, it is most important for you to invest in Bitcoin, because so far we have seen that those who wait to invest in Bitcoin and are eager to learn about Bitcoin investment are definitely falling behind in Bitcoin investment. So I say you know and understand by reading these things, you can start investing in Bitcoin at the beginning and then gradually you will learn about Bitcoin and you will also understand the strategy.
How you can profit by investing in Bitcoin in the long term, you will definitely learn all these things later, every person should follow this that the more you delay investing in Bitcoin, the more you will fall behind in the future. So Bitcoin investment should be started quickly and various strategies should be followed by participating in the long-term journey, among which forming an emergency fund is the most important.

I agree with you that you don't need to know everything at the beginning. Because you will have enough time to learn even after starting. However, the mentality that if you don't start now, you will fall behind in the future can push a newbie to rush instead of teaching. Bitcoin is not going away anywhere. Bitcoin has been providing opportunities since the past and I believe Bitcoin will continue to provide opportunities for many decades. The price you see today may be higher or lower tomorrow. So when you advise someone to buy now because you see others moving forward, it may not be a long-term plan but a decision made out of fear of losing. Because then many people may rush to invest without realizing it even though they don't have discretionary income for fear of losing it. In this, they may further weaken their financial situation in the name of moving forward.

So, while it's not mandatory to have a lot of knowledge before starting, it's not a bad idea to take the time to consider whether you have discretionary income. Because I think it's mandatory to have discretionary income even though you don't need to know a lot to start investing.

[ChocolateBitcoinK]

An emergency fund is indeed a building block of a good bitcoin investment plan, and I agree. If not, even those who know what they believe may have to sell their assets when the market is down to pay their bills. That's why I believe it is a better idea to create a financial buffer first and then ramp up buying bitcoin. Meanwhile, being emotionally invested in an emergency fund doesn't prevent you from making emotional errors of judgment, such as greed or panic. The will for discipline, patience, and a long-term plan is still required for investors. Bitcoin is rewarding individuals who are able to hold through the volatility. And with proper financial planning. That is a lot easier!

You are right. In Bitcoin investment, a backup fund reduces the risk of selling Bitcoin in an emergency. But to hold for a long time, you first need a strong mentality and full control over your emotions. Because the price of Bitcoin is very volatile in the short term. So, to protect yourself from panic selling if the price keeps falling, you need to first make your mindset strong. After that, proper financial management can protect you from selling Bitcoin at the wrong time.

I really don’t get the aspect of strong mentality you’re talking about. In most cases, guys that panic during bitcoin down trend are those that go beyond their discretionary  fund to accumulate Bitcoin, they tend to watch the market every move so they can sell when there is down trend to avoid seeing the the price of their stash reduce.
Theirs is a reason it’s always advice to invests with your discretionary fund, so a guy don’t start panicking when Bitcoin is in it correction phase. As an investor aspiring to go into Bitcoin investment, it’s only wise that you come in with a long term goal because Bitcoin doesn’t reward those that are desperate.

Strong mentality has to do with understanding how Bitcoin works and planning for it accordingly for the long term. You’re right Bitcoin doesn’t reward the desperate, so guys who over do it by going beyond their discretionary and those who get in for just the short term goals are usually the ones panicking.

Trading bitcoin is not favourable, guys have to understand and know this. The best thing is to invest with the discretionary money alongside having an emergency fund and maintain consistency.

In addition, a strong mindset means that you are confident in holding your investment for the long term and are ready to hold it no matter what the market situation is. Because many people sell their investments in market volatility. Especially those who invest for the short term, that is, trade, most of them panic and sell because if the amount of capital they invest with starts to decrease, they will definitely sell it. For example, suppose a trader invested $50 today and thought that he would sell it after three or seven days when his capital will increase to $55, $60 or other amounts. However, if he sees that the price has started to decrease tomorrow and the $50 capital has decreased to $45, then he will think that if the price decreases further, his capital will decrease further and he sells it. Therefore, most of those who invest for short-term goals are also panicked.

[Grease5000]

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Many people take the time to learn from past mistakes and develop the right strategy to protect their capital. In my personal experience, waiting for the perfect timing often leads to missed opportunities in Bitcoin. It is impossible to catch a market bottom or the exact right moment.

It is true what they do that learning from experience is one way to introspect themselves to not make mistakes for the second time that will be done because for me it is normal for someone to make mistakes so that they know themselves that what they did was a mistake so that they immediately take action to learn from the mistakes they made with the aim that everything they do must really have a special strategy for the reason of not happening again to the mistakes they have made before where they made mistakes in what they did so that they failed to develop the right time in determining actions towards their efforts to be able to protect existing capital.

Those who tend to predict or perfect the. Market often end up delaying their bitcoin investment journey. at times  may miss out and  get to kick  off their bitcoin investment journey. The truth is no one can perfectly predict the bottom or the top of the market.

This is why it is best to start buying bitcoin as soon as you are able to figure out  your discretionary income  by using the DCA method to accumulate bitcoin rather than waiting for the perfect price before buying. That way  I keep buying and if price drop I will buy using the same amount of money

[G_Besar]

It's not the buying that's the hard part, it's the long-term holding of Bitcoin. A small unit can be purchased by anyone, but the discipline to persist in building up even during down markets and to not be influenced by emotion when selling is essential and requires a plan. For this reason, I think there should always be a certain amount of Bitcoin in your investment plan and an emergency fund. They work together. If you have to sell your bitcoins at an inopportune moment, then you are less likely to do so, if you have an unexpected expense. It's OK to get small, but patience, consistency and good financial management are key to a successful long-term investment in Bitcoin.

While most people already understand the basics of long-term Bitcoin investing, many will have already implemented them, or even long ago. Therefore, there are clearly a significant number of Bitcoin investors now, and this has made Bitcoin even stronger and no longer doubted by anyone or by people from all walks of life. Therefore, something like investing tends to be integrated with a plan and more thorough preparation from each individual.

[laijsica]

It's not the buying that's the hard part, it's the long-term holding of Bitcoin. A small unit can be purchased by anyone, but the discipline to persist in building up even during down markets and to not be influenced by emotion when selling is essential and requires a plan. For this reason, I think there should always be a certain amount of Bitcoin in your investment plan and an emergency fund. They work together. If you have to sell your bitcoins at an inopportune moment, then you are less likely to do so, if you have an unexpected expense. It's OK to get small, but patience, consistency and good financial management are key to a successful long-term investment in Bitcoin.

While most people already understand the basics of long-term Bitcoin investing, many will have already implemented them, or even long ago. Therefore, there are clearly a significant number of Bitcoin investors now, and this has made Bitcoin even stronger and no longer doubted by anyone or by people from all walks of life. Therefore, something like investing tends to be integrated with a plan and more thorough preparation from each individual.

Many folk are aware of long term Bitcoin investment but there is a small community among them who are not patient enough to stay on such a long term cycle. They are more inclined towards short term trading than long term investment. They do not realize it until they lose money because they do not want to take advice from an experienced investor.

The encouraging thing is that a large community is accumulating Bitcoin for the long term. They accumulate Bitcoin regularly through discretionary income and do not withdraw their Bitcoin holdings before a complete cycle or run multiple cycles. Earlier it was thought that Bitcoin was only for rich investors but recently that perception has changed. Now investors of any income rich or poor are depositing Bitcoin and building their portfolios using long term strategies.

[Different patterns]

For every investment knowledge is needed to be able to make proper decisions that will guide your investment journey and i think that's what this thread is about and the purpose of the author of this topic.

A person wishing to invest in bitcoin should understand that the market is highly volatile. Hence, decisions like long term or short term investment plan should be considered. Also, the money that should be invested should be what you can forgo. That way you can invest without stress and pressure.

Personally I don't expect a newbie to be totally blank even though I know that what is required of everyone to invest in Bitcoin is their discreationary income, I still think a newbie should not be a dummy even though that part is not discussed here

We do discuss not being a dummy.   If a person has common sense, then he is presumptively not a dummy, even though common sense does not tell us exactly what we should know and not know, and we have to figure that part out using our common sense.. which is a way of suggesting that we use our judgement.

We do suggest that guys need to know how to make sure that they have discretionary funds and that they are using discretionary funds to buy bitcoin, yet there isn't really any other specific knowledge that a beginner has to know in order to get started buying bitcoin, except maybe figuring out from where he is going to buy the bitcoin.   His common sense should help to guide him in regards to how much he is going to start with.

Very important "common sense". From the evaluation of common sense here that means common sense can do and has been doing the wonders many would be newbies and newbies worry themselves about by imagining the level of knowledge to be acquired when they are already loaded with so much that they can start with. Decision on how much to start with is not something that will cause sleeplessness and where to buy Bitcoin from is also easily decided by even other peoples analysis from which a newbie can decide where to buy all of which are produced out of common sense.
As for having discretionary funds, doing expenses or need analysis will help set aside the funds that are discretionary and doing this is still out of common sense.

Sure common sense is not any particular knowledge set, but instead perhaps being able exercise good judgement based on whatever knowledge, skills and experiences that a guy might have and then making judgements from there.

So if a guy with common sense knows that he does not know math enough to figure out discretionary income, his common sense would tell him to learn how to figure out his discretionary funds, and it may also help to inform him to start out slowly.

The guy looks at what he has and what he does not have, and if he does not have it whether he needs to get it and if he does not have it whether he can still start buying bitcoin in a more modified amount, so he may well ONLY increase his level of aggressiveness in buying bitcoin as he becomes more comfortable with making sure that he has what he needs to have, yet even if he might not be aggressive, he still may well get started and build his bitcoin holdings as he is learning about bitcoin and strengthening his cashflow management systems/practices.

Exactly, common sense is about  making a good decision based on the experience, knowledge, and resources someone have at moment, and it also mean recognizing what you know, what you don’t know and taking a reasonable steps to improve while avoiding the unnecessary risks, this is the reasons why I think some people overcomplicate to getting started with bitcoin, they think they have to master every financial concept before they buy there bitcoin, I don’t think that’s the right approach. If investor still want to learn or how to calculate is discretionary income to build proper budget, that’s to start buying bitcoin with little amount that won’t distract is daily life, at same time to continue with learning. but the important thing is not to keep postponing your bitcoin journey, because you are waiting for perfect knowledge, nobody knows everything before start.

[Ishicryptic]

It's not the buying that's the hard part, it's the long-term holding of Bitcoin. A small unit can be purchased by anyone, but the discipline to persist in building up even during down markets and to not be influenced by emotion when selling is essential and requires a plan. For this reason, I think there should always be a certain amount of Bitcoin in your investment plan and an emergency fund. They work together. If you have to sell your bitcoins at an inopportune moment, then you are less likely to do so, if you have an unexpected expense. It's OK to get small, but patience, consistency and good financial management are key to a successful long-term investment in Bitcoin.

While most people already understand the basics of long-term Bitcoin investing, many will have already implemented them, or even long ago. Therefore, there are clearly a significant number of Bitcoin investors now, and this has made Bitcoin even stronger and no longer doubted by anyone or by people from all walks of life. Therefore, something like investing tends to be integrated with a plan and more thorough preparation from each individual.

Many folk are aware of long term Bitcoin investment but there is a small community among them who are not patient enough to stay on such a long term cycle. They are more inclined towards short term trading than long term investment. They do not realize it until they lose money because they do not want to take advice from an experienced investor.

The encouraging thing is that a large community is accumulating Bitcoin for the long term. They accumulate Bitcoin regularly through discretionary income and do not withdraw their Bitcoin holdings before a complete cycle or run multiple cycles. Earlier it was thought that Bitcoin was only for rich investors but recently that perception has changed. Now investors of any income rich or poor are depositing Bitcoin and building their portfolios using long term strategies.

I'm pretty sure that a lot of Bitcoin investors who have intentions of holding for a long term but due to one financial reasons or the other sells prematurely understands that they were not supposed to sell so it is often due to a lack of money to take care of immediate important needs that necessitates them to sell prematurely. As we have the mindset of buying and holding Bitcoin for many years without selling we should also try to be increasing our earnings because most likely our financial responsibilities will be increasing including emergencies that might require more money than what we presently have on ground based on current financial situation. I believe that if you are focused on a long term goal to accumulate and hold you should also try to find extra means of making more money so that there won't be a pressure to sell prematurely because you must sell as a result of lack of reserve funds.

[Stive009]

It's not the buying that's the hard part, it's the long-term holding of Bitcoin. A small unit can be purchased by anyone, but the discipline to persist in building up even during down markets and to not be influenced by emotion when selling is essential and requires a plan. For this reason, I think there should always be a certain amount of Bitcoin in your investment plan and an emergency fund. They work together. If you have to sell your bitcoins at an inopportune moment, then you are less likely to do so, if you have an unexpected expense. It's OK to get small, but patience, consistency and good financial management are key to a successful long-term investment in Bitcoin.

While most people already understand the basics of long-term Bitcoin investing, many will have already implemented them, or even long ago. Therefore, there are clearly a significant number of Bitcoin investors now, and this has made Bitcoin even stronger and no longer doubted by anyone or by people from all walks of life. Therefore, something like investing tends to be integrated with a plan and more thorough preparation from each individual.

Many folk are aware of long term Bitcoin investment but there is a small community among them who are not patient enough to stay on such a long term cycle. They are more inclined towards short term trading than long term investment. They do not realize it until they lose money because they do not want to take advice from an experienced investor.

The encouraging thing is that a large community is accumulating Bitcoin for the long term. They accumulate Bitcoin regularly through discretionary income and do not withdraw their Bitcoin holdings before a complete cycle or run multiple cycles. Earlier it was thought that Bitcoin was only for rich investors but recently that perception has changed. Now investors of any income rich or poor are depositing Bitcoin and building their portfolios using long term strategies.

I'm pretty sure that a lot of Bitcoin investors who have intentions of holding for a long term but due to one financial reasons or the other sells prematurely understands that they were not supposed to sell so it is often due to a lack of money to take care of immediate important needs that necessitates them to sell prematurely. As we have the mindset of buying and holding Bitcoin for many years without selling we should also try to be increasing our earnings because most likely our financial responsibilities will be increasing including emergencies that might require more money than what we presently have on ground based on current financial situation. I believe that if you are focused on a long term goal to accumulate and hold you should also try to find extra means of making more money so that there won't be a pressure to sell prematurely because you must sell as a result of lack of reserve funds.

Many people think that it is possible to hold Bitcoin with the money saved by reducing daily expenses or basic needs. But over time inflation and family responsibilities tend to increase. So i think it is important to be offensive rather than just defensive. The more your source of income or income increases, the stronger your ability to DCA will be and the portfolio will remain intact. Bitcoin is undoubtedly one of the most powerful means of preserving wealth in the long term.
To hold Bitcoin for 4-8 years you need peace of mind. when there is not enough liquid cash or emergency funds in your pocket people get stressed when the price of Bitcoin drops. But if you have an additional source of income you know that your daily life is secure. Then no matter how low the market is you can hold it with a calm head without being upset at all. The first condition for becoming a long-term Bitcoin investor is to strengthen your real-life financial foundation. In addition to accumulating Bitcoin, you should also improve your skills and find new ways to earn. Because
Just as additional income increases our capital we do not have to rush to sell Bitcoin for household expenses. As a result it gives us enough time to survive in the market for years without any mental stress. When you do not have to break Bitcoin for urgent expenses you can enjoy its real long term growth. This financial security keeps an investor free from serious mental traps like panic selling or FOMO.
So i would say that strengthening your real life financial foundation is one of the conditions for becoming a long-term Bitcoin investor.

[BluebloodCXVI]

You are right, there is no obligation to create a complete emergency fund and then invest in starting an investment. An investor can create an emergency fund after starting an investment or along with starting an investment. However, he can consider for himself how long an investor can live with an empty fund. Everyone's lifestyle is different, so he can decide for himself by considering who has what expenses and when and what he may need. However, if an investor thinks that he is unlikely to have an emergency need after starting an investment and that he does not have an emergency situation, then he can start without creating a fund. However, I think that every investor needs an emergency fund and should not stay with an empty fund for a long time after starting. An emergency fund should also be created along with investing, even if it is a very small amount. Because this is what will protect our investment in unexpected situations.

WTF are you talking about?, it’s called emergency for a reason; you never know when it’s gonna happen so how the fuck will an investor know when they are gonna be having an emergency need? It’s not like they can see the future or something.

I don’t think it makes sense for you to be proclaiming that “an investor should be able to consider for themselves how long they can live with an empty fund……
The truth is that they can’t know for sure because an emergency is unpredictable and it can happen tomorrow or maybe years from now.

There’s no one size fits all timeline for an investor to build emergency fund.
What they should be worried about is trying to minimize the amount of time that they go without having emergency funds while still balancing it with their investment strategy.

[Bigjoe33]

You've created an ideal model for anyone venturing into the crypto realm. The decision to only risk discretionary income, money that one can afford to lose, reduces the stress of the novice by a tremendous amount.

But as you said rightly, when they trade using the proper way and with the money they do not need immediately, those falls in prices are not considered urgent by them and they are not forced to sell in a hurry at a loss.

This period acts as a learning process for them as the experience they gain from trading with Bitcoin and knowing its cycles will help them become confident and only after that will they be able to invest more aggressively.

Seems like you are delivering a full lecture on trading here, and common, it isn't needed here. Your post is full of trading instead of Bitcoin investment which this thread or topic was created for. Look at the topic title, you would see that it's purely for Bitcoin investment and not all this trading shit talks.

No matter your level of experience while trading, yet traders still fall to very big losses as the risk is very high and a trader can end up loosing big unexpectedly.  Sure, anyone can do whatever they like, but it's advisable to concentrate on Bitcoin investment rather than trading all day long and proclaiming that experience can save you from incurring some level of losses

[Sim_card]

What they should be worried about is trying to minimize the amount of time that they go without having emergency funds while still balancing it with their investment strategy.

You shouldn't ignore the importance of building an emergency funds the moment you start your bitcoin investment to avoid selling it prematurely because if you start accumulating bitcoin and don't immediately, start building your emergency funds alongside with your bitcoin investment, an emergency might pop up when you don't have an emergency funds and will lead to you using your bitcoin investment to tackle the real life emergency.

It's good that a long term bitcoin investor balances his bitcoin investment with his emergency funds to avoid being hit with an unexpected emergency unprepared. Best thing to do as a brand new investor is to share your discretionary income into three equal parts. 1/3 for his regular DCA, 1/3 for building his emergency funds and the last 1/3 for his discretionary consumption. Anyone buying bitcoin without building his emergency funds is only gambling.

[sotelorene]

It's not the buying that's the hard part, it's the long-term holding of Bitcoin. A small unit can be purchased by anyone, but the discipline to persist in building up even during down markets and to not be influenced by emotion when selling is essential and requires a plan. For this reason, I think there should always be a certain amount of Bitcoin in your investment plan and an emergency fund. They work together. If you have to sell your bitcoins at an inopportune moment, then you are less likely to do so, if you have an unexpected expense. It's OK to get small, but patience, consistency and good financial management are key to a successful long-term investment in Bitcoin.

While most people already understand the basics of long-term Bitcoin investing, many will have already implemented them, or even long ago. Therefore, there are clearly a significant number of Bitcoin investors now, and this has made Bitcoin even stronger and no longer doubted by anyone or by people from all walks of life. Therefore, something like investing tends to be integrated with a plan and more thorough preparation from each individual.

Those that has implemented the long term Bitcoin investment are the people that understood what it means to accumulate Bitcoin and hold for a long period of time and the reason why it is not that hard is that what is needed to start is just a discrestionary income, a leftover, money we won't need to use for long period of time. Some people are very funny that instead of accumulating with their discretionary income they will use it and do things that won't bring any value to them.