JJG’s Outline of Bitcoin Investment Ideas

[impulse709]

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.

Discretionary income is the basis of a sustainable Bitcoin strategy as I believe it is. There are a lot of people who think about buying when they should, but they don't think about where the money is going to come from. You will probably panic and sell when the market is down if you are putting money into an investment that you may need for bills or other emergencies. It's for this reason that it's a great idea to save money in an emergency fund while chipping away at your Bitcoin pile. It isn't about the one huge purchase, but about the regular purchases you make with extra cash, the patience to wait through the bull and bear markets, and the discipline to not spend any money or become unbalanced in your finances and ability to buy more.

[ChisomP]

~cut~

Always make Bitcoin your primary growth asset by continuously DCAing as much as possible on a regular basis. Those who want to preserve their wealth and enjoy a better life in the future should focus their goal on accumulating as much Bitcoin as possible starting now because Bitcoin is a growth engine.

You are mixing up in the way that you talk about growth of value versus preservation of value.

Of course, there is a need to grow value prior to preserving it.  Concentration tends to grow value and diversification tends to preserve value.  Surely there are folks who are new who wrongly presume diversification to be a way to grow, so what they are doing is a form of gambling to throw value at a bunch of different assets in order to hope that one or more of them grows a lot in value, and yeah, that is gambling and trading and even shitcoining, which is not the topic of this thread, especially since it is not even a good approach in trying to build/grow wealth.

~cut~

This is true and in addition, I think at the initial stage of investment in general, it is better to grow your investment by concentrating in one investment, if you already know what works. I feel it is common sense to concentrate on what works if you really want to be profitable and grow your investment rather than diversifying.

Some people want to test every new thing to see which is better; if that is your goal at the initial stage, then one can diversify, when you see which is the best, then concentrate and grow your investment until you feel you want to spread across different investments to preserve your wealth; just as the old saying goes "do not put all your eggs in one basket".

[JayJuanGee]

I believe that both perspectives go hand-in-hand. In terms of purchase of Bitcoin, discretionary income should be used to invest money since saving money meant for day to day use is a waste of effort since it's used for long term holding. Meanwhile. Boosting your pay is still a worthwhile objective as life is uncertain. The discretionary income may be decreased due to emergencies. Inflation or new family responsibilities. Improved earning potential and good financial management creates an easier environment for DCA, allowing the individual to stay the course and not be forced to sell Bitcoin when prices are on a downward trend. Ultimately, a long-term Bitcoin strategy is only sustainable through consistency, patient, and good personal finances.

Why don't you tell us about yourself @#CapsLOck.

You have been registered here since May 2017, so does that mean that you have been buying bitcoin since then?  For sure, that is 9 years, which is generally considered to be a reasonably decently good amount of time to buy bitcoin, even though surely some guys did not start buying bitcoin as soon as they got their forum registration, and so there sometimes can be difficulties to really begin to build bitcoin holdings and then to stick with some kind of an ongoing and consistent plan to buy on a regular basis, whether weekly, or otherwise.

I generally agree with your point that ongoing cashflow management and persistency in buying bitcoin remains a good practice.

Also, improving your income situation may well be a good idea, yet some guys might not have a lot of abilities to improve their income situation, so they have to deal with the income that they already have.

~cut~

Always make Bitcoin your primary growth asset by continuously DCAing as much as possible on a regular basis. Those who want to preserve their wealth and enjoy a better life in the future should focus their goal on accumulating as much Bitcoin as possible starting now because Bitcoin is a growth engine.

You are mixing up in the way that you talk about growth of value versus preservation of value.

Of course, there is a need to grow value prior to preserving it.  Concentration tends to grow value and diversification tends to preserve value.  Surely there are folks who are new who wrongly presume diversification to be a way to grow, so what they are doing is a form of gambling to throw value at a bunch of different assets in order to hope that one or more of them grows a lot in value, and yeah, that is gambling and trading and even shitcoining, which is not the topic of this thread, especially since it is not even a good approach in trying to build/grow wealth.
~cut~

This is true and in addition, I think at the initial stage of investment in general, it is better to grow your investment by concentrating in one investment, if you already know what works. I feel it is common sense to concentrate on what works if you really want to be profitable and grow your investment rather than diversifying.

Some people want to test every new thing to see which is better; if that is your goal at the initial stage, then one can diversify, when you see which is the best, then concentrate and grow your investment until you feel you want to spread across different investments to preserve your wealth; just as the old saying goes "do not put all your eggs in one basket".

You still might be saying something different from me @ChisomP.

I am not even trying to proclaim that any of us knows shit about bitcoin at the time that we get started investing in it, yet we might have a hunch that bitcoin might be a good place to hedge against the dollar (and other fiat currencies), so we merely are attempting to save with it in a way in which we end up putting 5-25% of our income into it (surely depending on the availabilty of discretionary funds, and surely there can be quite a bit of variety in terms of how much any beginner investors might be able to invest into bitcoin, yet at the same time, they may well not have any other investment besides bitcoin and dollars for several years, and maybe even 10 years or so, since if a person is ONLY investing 10% or less of his income into bitcoin, it is going to take 10 years to build up to a mere year's worth of income invested into bitcoin.

And, sure maybe by the time they have invested 6-12 months of income into bitcoin, they might start to feel some possible justification to start to diversify into things that are other than bitcoin and cash.  

The other justification for diversifying might relate to how much cash reserves that the newbie investor has been able to build up, so if the cash is adding up to 3-6 months or even more of their expenses, they might want to put some of that cash into something other than cash... since even if they are using it for back up funds and/or emergencies, they likely don't need to have that much cash that is totally liquid and in cash.

I am not too thrilled about the idea of diversification for the mere sake of diversification, yet I cannot really proclaim when I believe that diversification might start to make sense for someone else, yet even investing into bitcoin for a whole cycle might at least have had gotten them enough of a building up of both their bitcoin stash and their cash reserves that they might start to consider it justified to be considering some kind of diversification beyond merely bitcoin and cash.

[Mandoy]

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.

I'll agree with you that one overlooked aspect of Bitcoin's long-term strategy is increasing your income. You can easily do both DCA and holding when you have enough money in your budget for investing and unexpected expenses as well. Having an emergency fund will minimize the risk of selling Bitcoin at an inopportune moment. But also maximizing earning potential will help cushion the blow. However, not everyone will be able to make a quick profit, which means the biggest challenge is putting aside money that you can actually afford to leave unspent for a number of years. Realistic objectives, financial rigor and patience are much more sustainable than quick winnings from frequent trading.

[B-BossMan]

You have been registered here since May 2017, so does that mean that you have been buying bitcoin since then?  For sure, that is 9 years, which is generally considered to be a reasonably decently good amount of time to buy bitcoin, even though surely some guys did not start buying bitcoin as soon as they got their forum registration, and so there sometimes can be difficulties to really begin to build bitcoin holdings and then to stick with some kind of an ongoing and consistent plan to buy on a regular basis, whether weekly, or otherwise.

I generally agree with your point that ongoing cashflow management and persistency in buying bitcoin remains a good practice.

Also, improving your income situation may well be a good idea, yet some guys might not have a lot of abilities to improve their income situation, so they have to deal with the income that they already have.

Agreed with you that a good cashflow management and consistency are main roles that really build a meaningful Bitcoin position over a long term period. While increasing our incomes can definitely assist us in accumulating faster, but the truths is that not everyone has the opportunity to earn more immediately, but that's should not discouraged anyone from starting or proceeding with thier bitcoin holdings. So the best is to work with your current discretionary income at the moment, people should always learn how to manage thoer their expenses smartly and still remain consistent with thier bitcoin purchasing. That's also why I do believed that newbies should invest with only discretionary income and invest whatever they can afford to lose comfortably. As such they are less likely to go way with fears even when there's market decrease or selling it off when there is any unexpected financial needs.(emergency). Over a period of time, the steady accumulation,endurance and good cashflow management discipline is musc more better than investing a large amount at once without proper cashflow management.

[SuperBitMan]

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

Yeah this thread is for bitcoin investment but I always feel this thread should have been in another board and not trading discussion because some persons come here to talk about trading, maybe since the thread is in trading discussion but they should at Least look at the title of the thread, because with the title of the thread you will understand that it’s for bitcoin investment discussions.

I think everyone already knows that trading is very risky, anyone that those not know this is simply not a smart person, no one can be too professional in trading that you will stop losing, no matter how good you are you will be losing and gaining.
And yes the best part is to go into bitcoin long term investment because is less risky however there’s no full assurance of making profit at the long run.

[Different patterns]

~cut~

Always make Bitcoin your primary growth asset by continuously DCAing as much as possible on a regular basis. Those who want to preserve their wealth and enjoy a better life in the future should focus their goal on accumulating as much Bitcoin as possible starting now because Bitcoin is a growth engine.

You are mixing up in the way that you talk about growth of value versus preservation of value.

Of course, there is a need to grow value prior to preserving it.  Concentration tends to grow value and diversification tends to preserve value.  Surely there are folks who are new who wrongly presume diversification to be a way to grow, so what they are doing is a form of gambling to throw value at a bunch of different assets in order to hope that one or more of them grows a lot in value, and yeah, that is gambling and trading and even shitcoining, which is not the topic of this thread, especially since it is not even a good approach in trying to build/grow wealth.
~cut~

This is true and in addition, I think at the initial stage of investment in general, it is better to grow your investment by concentrating in one investment, if you already know what works. I feel it is common sense to concentrate on what works if you really want to be profitable and grow your investment rather than diversifying.

Some people want to test every new thing to see which is better; if that is your goal at the initial stage, then one can diversify, when you see which is the best, then concentrate and grow your investment until you feel you want to spread across different investments to preserve your wealth; just as the old saying goes "do not put all your eggs in one basket".

You still might be saying something different from me @ChisomP.

I am not even trying to proclaim that any of us knows shit about bitcoin at the time that we get started investing in it, yet we might have a hunch that bitcoin might be a good place to hedge against the dollar (and other fiat currencies), so we merely are attempting to save with it in a way in which we end up putting 5-25% of our income into it (surely depending on the availabilty of discretionary funds, and surely there can be quite a bit of variety in terms of how much any beginner investors might be able to invest into bitcoin, yet at the same time, they may well not have any other investment besides bitcoin and dollars for several years, and maybe even 10 years or so, since if a person is ONLY investing 10% or less of his income into bitcoin, it is going to take 10 years to build up to a mere year's worth of income invested into bitcoin.

And, sure maybe by the time they have invested 6-12 months of income into bitcoin, they might start to feel some possible justification to start to diversify into things that are other than bitcoin and cash.  

Investment is a gradual process, so I agree with the general idea, because is not something that have to be perfect right from day one, many investors today, they don’t fully master everything about bitcoin before they buy or start their bitcoin investment, what they do, is simple learn enough to recognize it value and begin with amount they can afford via their discretionary income, as a investor, as you continue with investing, continue with learning.

And I also suggest, beginners should not too concerned about diversification at early stage, especially if capital is still small, spreading it into different assets may only reduce the ability to build a meaningful position, because normally it can take many years of consistent DCA to accumulate a significant bitcoin holding, must especially for some folks who investing only 5-10% of their income.   But I don’t really mean diversification is bad, is everyone choice, but it good to first build a strong financial foundation, and maintain emergency fund and steadily accumulate bitcoin at first.

[BluebloodCXVI]

This is true and in addition, I think at the initial stage of investment in general, it is better to grow your investment by concentrating in one investment, if you already know what works. I feel it is common sense to concentrate on what works if you really want to be profitable and grow your investment rather than diversifying.

Some people want to test every new thing to see which is better; if that is your goal at the initial stage, then one can diversify, when you see which is the best, then concentrate and grow your investment until you feel you want to spread across different investments to preserve your wealth; just as the old saying goes "do not put all your eggs in one basket".

A lot of people tend to rush into diversifying their investments without really pausing to ask themselves if it actually makes sense for them to do it at the current stage they are in.

For someone who has small capital to invest with, spreading it out across several other investment assets isn’t really an ideal thing to do. There’s a high chance that the capital would be spread out thin and might not be able to help them build a substantial portfolio; so they’d literally be getting a little bit of everything but not enough of anything to make any meaningful difference in their portfolio.

For me it’s better for folks to just concentrate more on investing in the asset that they have more conviction in and  grow their position there before thinking of diversification.

There’s a difference between someone sticking to something because they’ve done their homework about that thing and they understand why they’re invested in it, and someone who is just piling into something because it’s the latest trend; focus on strategy not hype my boy.

[Agbam]

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.

My friend what are you on about? Emergency funds is an obligation that you owe yourself, it’s for the safety of your investments and this are situations no one can predict happening, you don’t decide when an emergency will happen that’s why you plan for it.

The fact that we suggest that you can start investing even when you don’t have emergency fund doesn’t mean it’s not necessary or you’ll start without having some sort of backup.

[Cgrexp]

I'll agree with you that one overlooked aspect of Bitcoin's long-term strategy is increasing your income. You can easily do both DCA and holding when you have enough money in your budget for investing and unexpected expenses as well. Having an emergency fund will minimize the risk of selling Bitcoin at an inopportune moment. But also maximizing earning potential will help cushion the blow. However, not everyone will be able to make a quick profit, which means the biggest challenge is putting aside money that you can actually afford to leave unspent for a number of years. Realistic objectives, financial rigor and patience are much more sustainable than quick winnings from frequent trading.

Building financial capacity and discipline is essential for long-term investing. As your income increases, it becomes relatively easier to continue investing, meet emergency funds, and meet your needs better. However, not everyone is able to increase their income quickly. Therefore, instead of delaying the increase in income, you should start with whatever you can afford to invest now, no matter how small. And after starting, it can be a realistic strategy to try to increase your income gradually.

[johnsaributua]

...

My friend what are you on about? Emergency funds is an obligation that you owe yourself, it’s for the safety of your investments and this are situations no one can predict happening, you don’t decide when an emergency will happen that’s why you plan for it.

The fact that we suggest that you can start investing even when you don’t have emergency fund doesn’t mean it’s not necessary or you’ll start without having some sort of backup.

Successful investing is inseparable from having an emergency fund. A person cannot succeed without it. There are times when emergency funds are desperately needed, especially when the time or situation is different. Having an emergency fund makes solving these problems easier.

The impact of not having an emergency fund is that the victim is only focused on the accumulated amount, which must be sold to resolve the problem. Therefore, an emergency fund is an obligation for those investing in Bitcoin, especially long-term investments. It must always be used when needed, as its purpose is to avoid dipping into the invested amount.

[Princess Leah]

...

My friend what are you on about? Emergency funds is an obligation that you owe yourself, it’s for the safety of your investments and this are situations no one can predict happening, you don’t decide when an emergency will happen that’s why you plan for it.

The fact that we suggest that you can start investing even when you don’t have emergency fund doesn’t mean it’s not necessary or you’ll start without having some sort of backup.

Successful investing is inseparable from having an emergency fund. A person cannot succeed without it. There are times when emergency funds are desperately needed, especially when the time or situation is different. Having an emergency fund makes solving these problems easier.

The impact of not having an emergency fund is that the victim is only focused on the accumulated amount, which must be sold to resolve the problem. Therefore, an emergency fund is an obligation for those investing in Bitcoin, especially long-term investments. It must always be used when needed, as its purpose is to avoid dipping into the invested amount.

People who overlook having an emergency fund act like they're immune to emergency situations, my advice is that instead of playing God they should do the need regardless of how tough it may be for them cause humans would always face challenges that we can't tell when they'll occur and if we're not financially ready to solve them, we could end up using money meant for other things to solve it.

 Investing without an emergency funds is as good as doing nothing cause on the long run if an emergency situation occur, the investment might or would end up withdrawing too early from the investment to solve the situation so to avoid such complications in the investment it's good to have it sorted out.

[Razmirraz]

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.

In theory, your argument is very logical, but it is very risky when it comes to Bitcoin. Now try to imagine if this scenario happened while you were investing without having an emergency fund. After all your money was invested in Bitcoin in January, then in March you suddenly get sick, get fired from your job or need money for other urgent needs. At the same time, the value of Bitcoin is plummeting by 30%. In a situation like this, selling Bitcoin will result in a loss or digging a hole to find a loan to meet your needs.

Never think or get too caught up in the prejudice of excessive self-confidence that you will never be in an emergency situation, this kind of mindset is very wrong because an emergency situation can come at any time. So the logic is like this, if Bitcoin is considered a 4-year marathon, then an emergency fund is like shoes that support you in running perfectly, even though you can run without shoes, but most likely your feet will get blisters.

Imagine if the value of Bitcoin dropped 30% after you invested without preparing an emergency fund, and you suddenly needed money for medical expenses. At this point, you can certainly imagine whether you need emergency funds first or not.

[liasbaa]

I'll agree with you that one overlooked aspect of Bitcoin's long-term strategy is increasing your income. You can easily do both DCA and holding when you have enough money in your budget for investing and unexpected expenses as well. Having an emergency fund will minimize the risk of selling Bitcoin at an inopportune moment. But also maximizing earning potential will help cushion the blow. However, not everyone will be able to make a quick profit, which means the biggest challenge is putting aside money that you can actually afford to leave unspent for a number of years. Realistic objectives, financial rigor and patience are much more sustainable than quick winnings from frequent trading.

Building financial capacity and discipline is essential for long-term investing. As your income increases, it becomes relatively easier to continue investing, meet emergency funds, and meet your needs better. However, not everyone is able to increase their income quickly. Therefore, instead of delaying the increase in income, you should start with whatever you can afford to invest now, no matter how small. And after starting, it can be a realistic strategy to try to increase your income gradually.

Bitcoin accumulation require discretionary income. This is where it is necessary to give a full stop. The next question may be how much should be accumulated. The answer is that any amount of discretionary income allocation will not feel financially stressful to you. To be consistent in accumulation Bitcoin in the long term, you need an emergency fund and keep that fund in cash. Avoid spending this fund for any other need because this emergency fund is a fund that dedicated only to the long term protection of Bitcoin holding. Keep a portion of discretionary income in reserve for additional expenses and use this fund as a way of cash flow. Keep a balance in fund management by considering long term Bitcoin accumulation as a value consideration only then can you build a large Bitcoin holding.

[johnsaributua]

People who overlook having an emergency fund act like they're immune to emergency situations, my advice is that instead of playing God they should do the need regardless of how tough it may be for them cause humans would always face challenges that we can't tell when they'll occur and if we're not financially ready to solve them, we could end up using money meant for other things to solve it.

 Investing without an emergency funds is as good as doing nothing cause on the long run if an emergency situation occur, the investment might or would end up withdrawing too early from the investment to solve the situation so to avoid such complications in the investment it's good to have it sorted out.

That's right, my friend, because they think they can do anything, meaning they can do whatever they want, even though what they think like that will make them increasingly less able to achieve what they want because the only investment will not be able to grow without the support of an emergency fund. But I also wonder why many of us are sometimes still too unsure about the success of Bitcoin investments only by having an emergency fund, when if you think about it, it's clear because an emergency fund is an important part of making investments that can grow so that ultimately the investment we make can continue and we as owners can always protect the investment we protect with full consistency.

Having a selfish nature is making someone invest without needing an emergency fund because they think that the emergency fund is not important in investing even though they never thought that there was a time without them knowing when they experienced a situation that they did not want to happen to them so that their position of investing without having an emergency fund for example so that they will experience unexpected losses so that in the end they are forced to sell all the amount they have invested with the reason just to settle the matter that happened without them expecting so this is what we need to take care of because the emergency fund will be needed at a time without us predicting when it will be.