JJG’s Outline of Bitcoin Investment Ideas

[Sally9256]

But if you do not yet have an emergency fund and your income is irregular, it may be reasonable to temporarily focus on building an emergency fund. Setting the same ratio for both now will ignore their real financial differences.

For how long do you think it's proper to focus on building emergency fund and leave out your bitcoin investment?
I don't find it very efficient to focus only on your emergency fund and not consider your investment for the said period of time. You can always focus on the two, even if you've decided to leave out discretionary consumption based on your own financial situation.

If your definition of temporary is a year, then you would've missed out on buying bitcoin for a whole year despite having discretionary income just because your finances is irregular. That's not ideal. You should still divide it and keep adding to your portfolio no matter how little, even though you've decided to give your emergency fund more priority than bitcoin investment which I don't still find very ideal.

Why do you give the example of waiting a year? Temporarily giving more importance to the emergency fund does not mean that you have to stop investing for a year. Depending on the situation, it may be reasonable to stop buying for a few weeks or a few days.

Another thing is that someone's income is irregular and they do not have enough discretionary income to invest. So I am not in favor of advising everyone to buy Bitcoin, even if it is small, in all situations. If someone does not have a regular income, they may already have sufficient savings. In that case, they can continue to buy Bitcoin and increase their emergency fund at the same time if they want. The main thing for me is that understanding your true financial capacity is more important than maintaining the continuity of investments.

I don't see a reason why more importance should be given to emergency fund. Emergency fund is meant to protect your investment so why focus more on it when you haven't accumulated much Bitcoin, what exactly will your emergency fund be protecting. I also don't think it's ideal to focus on emergency fund and halt your accumulation for a while. Your Bitcoin accumulation is the most important part of investment so every other thing is supposed to come after it including back up funds. Back up funds are important but not as important as your investment itself.

Wether you have a stable income or not, as long as you are able to get discretionary income then first thing that takes part of it should be buying Bitcoin before anything else.

[Chinesebaby]

Proper risk management is something everyone must employ if they must last long investing or Trading, with proper risk management.

I don't know why you are bringing up trading in this thread because trading and long-term investment is not the same thing and they're the opposite of each other.


 Don't mislead newbies for them to think that trading is good. You sound more like a trader for talking about maximizing profits and mitigating losses, when a brand new investor should only focus on buying with DCA a d continue building his bitcoin stash over time.

You are to only invest with part of your discretionary income and set up an emergency funds and other backup funds along side as your are building your bitcoin investment. Your emergency funds should be at least least three months of your monthly expenses and don't buy bitcoin when you don't have discretionary income or don't sell with the hope to buy back to increase your bitcoin portfolio.

Yes, it's true that both trading and investing are not the same, but however, we can't disprove the fact that both have unique similarities, and the need for risk management is one similarity both investing and trading have in common, including the fact that everybody who goes into the two do so with the goal of making profits, and likewise it both involves the risk of financial loss. So he bringing in "Risk management" was not a misconception or neither was he trying to mislead newbies in any way.

[Charcol]

Since people are investing in crypto, which is the least risky and most promising among crypto currencies, they have to know a lot before investing and there is no question about it.

You need to correct some things here. You are probably trying to explain Bitcoin by the word "crypto". But it seems quite vague. "The word "crypto" can include any kind of scam, hype, fake project, shitcoin, token, but Bitcoin is completely different. Even if the price of Bitcoin goes down in the short term, it has the possibility of going up again. But most shitcoins get lost in the market by riding the hype.

If a person can create a secure wallet where he will store his invested bitcoins and has basic knowledge about bitcoin, then he can invest in bitcoin.

The so-called basic knowledge you mentioned is not mandatory in investing. If someone has discretionary income, then he can start freely. The point is not that learning stops after starting, but rather, then the opportunity to learn from real experience is created. In many cases, new investors can waste unnecessary time while searching for basic knowledge. In fact, learning through experience can become more meaningful.

[Brizi5000]

Proper risk management is something everyone must employ if they must last long investing or Trading, with proper risk management.

I don't know why you are bringing up trading in this thread because trading and long-term investment is not the same thing and they're the opposite of each other.


 Don't mislead newbies for them to think that trading is good. You sound more like a trader for talking about maximizing profits and mitigating losses, when a brand new investor should only focus on buying with DCA a d continue building his bitcoin stash over time.

You are to only invest with part of your discretionary income and set up an emergency funds and other backup funds along side as your are building your bitcoin investment. Your emergency funds should be at least least three months of your monthly expenses and don't buy bitcoin when you don't have discretionary income or don't sell with the hope to buy back to increase your bitcoin portfolio.

Yes, it's true that both trading and investing are not the same, but however, we can't disprove the fact that both have unique similarities, and the need for risk management is one similarity both investing and trading have in common, including the fact that everybody who goes into the two do so with the goal of making profits, and likewise it both involves the risk of financial loss. So he bringing in "Risk management" was not a misconception or neither was he trying to mislead newbies in any way.

Investing is different from trading bitcoin, they don’t have the same approach. I can tell you that everyone who goes into trading of bitcoin is doing that purely for making profits but Is not everyone who go into bitcoin investment for profit making as there are those who invests in bitcoin to secure their wealth and have financial freedom, privacy and control of their money. And if you’ve heard about the term “Hedge against Inflation” then you can agree with me that not everyone who invests in bitcoin for profit making. There are those who see bitcoin as a store of value and  to provide  them a hedge against inflation where by traditional fiat currency are being devalued as a result of some factors caused by economic instability, inflation, and probably some government policies as to the use of traditional fiat currency.

[Emeraldo]

Trading is pure bullshit and people need to understand the risk that is involved in trading.
Several people that are making money from traders often end up losing everything they have earned which is why investing using the DCA is important.

I think it is enough with the responses to this particular reply,  the first two responses made the point clear and corrections has been taken, so it wouldn't be necessary to over flog the issue so we don't begin to spam the thread trying to make a point that has already been made.

It's also important to understand that there's no form of investment that is absolutely risk free, so you cannot completely take out risk management from the discussion even as you are investing with an income supposed to be disectionary.

No one is trying to spam this thread and I am happy that you have been able to understand the difference between trading and investing with the little advise you have been given. We are all here to learn and no one is above learning. Also we can make mistakes as humans and is okay if you see people that are eagered to correct you so that your words do not mislead others that many not have concrete understanding about how to investing using discretionary incomes and while building their emergency funds.

[Homemade-IQ]

I don't see a reason why more importance should be given to emergency fund. Emergency fund is meant to protect your investment so why focus more on it when you haven't accumulated much Bitcoin, what exactly will your emergency fund be protecting. I also don't think it's ideal to focus on emergency fund and halt your accumulation for a while. Your Bitcoin accumulation is the most important part of investment so every other thing is supposed to come after it including back up funds.

The truth is that the survival of your Bitcoin investment depends on your emergency funds, but focusing more on building your emergency funds and neglecting your investment is the wrong way to go, because the very essence we are here is by investing in Bitcoin, so abandoning it for emergency funds makes no sense at all,  that is why investors are advice to invest and make arrangements for our emergency funds simultaneously.

The problem some Bitcoin investors have is by doing the right thing the wrong way, because if you focus more on your Bitcoin accumulation and neglecting the other, it's not going to be productive, so it important that both of them are done the same time, because it's only when both are done at the same time we can get a better results from it.

[JayJuanGee]

I think that’s a reasonable way to look at it.
A person doesn’t necessarily have to know everything first before getting started in investing, but they should at least recognise what they don’t know and let that be a guide for them to decide how much that they are willing to put into bitcoin.

You should have a proper idea about investing in Bitcoin, how you will invest and how to sustain it for a long time, it is enough to follow this strategy.

There is no requirement that a newbie bitcoin has a "proper idea about investing in bitcoin" as long as he has discretionary funds, he can decide whether or not to invest and if so how much.

Yes, a new person should not waste his time to know everything about Bitcoin, but he should invest in Bitcoin along with investing. This will give him enough time to learn about different strategies because learning strategies is very important to keep the Bitcoin investment.

There’s nothing wrong with a person learning as they go, provided that  they’re not exposing themselves to more risk than they can be able handle because having interest in an investment and knowing how much that you’re reasonably prepared to commit are two different things.

Yes, it is important to take risks according to your ability and move forward in this era. In this, Bitcoin investors will get enough opportunities to buy Bitcoin and by utilizing this opportunity, they will be able to gain huge benefits in the future. If every person follows such a strategy and puts enough effort into investing in Bitcoin, then that person will definitely be successful.

There is no guarantee of success in bitcoin, even if the bitcoin investor does all of the right things.

I think that’s a reasonable way to look at it.
A person doesn’t necessarily have to know everything first before getting started in investing, but they should at least recognise what they don’t know and let that be a guide for them to decide how much that they are willing to put into bitcoin.

Since people are investing in crypto, which is the least risky and most promising among crypto currencies, they have to know a lot before investing and there is no question about it. If a person can create a secure wallet where he will store his invested bitcoins and has basic knowledge about bitcoin, then he can invest in bitcoin.

Hopefully no one is fucking around with crypto (shitcoins).  In this thread we are talking about bitcoin, and they do not have to know a lot before investing. .and they do not need to know how to create and/or maintain a secure wallet or other basic knowledge that you are proclaiming before he can get started investing in bitcoin.

How many times do I have to repeat that he ONLY needs discretionary income to get started, but you want to pollute this thread with vague assertions that he needs to know other things about wallets and vague ideas of "basic knowledge" that you don't even define before he can get started?

Why can't the beginner bitcoiner decide on his own whether he can start or not based on his having discretionary funds?

And since bitcoin investment is a long-term process and the portfolio has to be maintained for a long time to achieve the desired profit after investment, I think if the investor invests in the DCA method, within a few days he will be able to learn a lot about bitcoin beyond investment, which will serve as an inspiration to preserve his bitcoin portfolio for a long time.

You are saying that the beginner needs to recognize bitcoin as a long term investment before he can start?  That does not seem to be a requirement that we (mostly me) proclaim to need before start to invest in bitcoin.

However, I will advise for beginners, you do not need to know much to invest in bitcoin. If you have discretionary income, you can start investing in Bitcoin now, just remember to build an emergency fund in addition to your Bitcoin investment as a safeguard for your Bitcoin portfolio.

Oh?  now you are saying that the beginner only needs discretionary income, but earlier you were saying that the beginner needs 1) to create a wallet, 2) basic knowledge and 3) to know bitcoin is a long term investment.  You are contradicting yourself within the same post.

Your first statement can't be comprehended i don't know where the word crypto is coming from maybe you wanted to say BTC but forgot to edit, even if that's the case the word crypto isn't supposed to show up here. Investing in bitcoin require you having your discretionary income available with your common sense you can know how to follow up their BTC accumulation, emergency funds is necessary for any one that what to hold their bitcoin for long because our emergency funds serves as a protection to our BTC.

Yes, I mean that when people are investing in Bitcoin, how safe and promising crypto currency is it, they don't have to be very knowledgeable at the beginning. If they have a basic understanding of Bitcoin and if they have a discretionary income, they can start investing in Bitcoin. But they have to make sure that the wallet in which they are storing their Bitcoins is safe. Also, there is no need to start investing after gaining a lot of experience in Bitcoin. If a person has a discretionary income and has a desire to invest, they can start investing. They can gain enough experience in this regard by investing in Bitcoin. Gradually, they will understand for themselves what kind of behavior they should have on their Bitcoin portfolio.
When the price increases, many people think that it is not the right time to invest in Bitcoin, in that case, I want to tell them that it is better to start investing in Bitcoin at any moment. If you wait for the price to decrease, you may fall behind in your investment. Since you are using the DCA method for investing, set goals on how to grow your Bitcoin portfolio without looking at the price.

This is a bit more clear than your first post - even though it could be better to edit your earlier post and to clarify it (putting a note on the bottom that you edited it).. yet at least me and Umulala-alala had already responded to your post, so it might be better to just leave your earlier post as it is, even though it is a bit confusing.

Proper risk management is something everyone must employ if they must last long investing or Trading, with proper risk management.

I don't know why you are bringing up trading in this thread because trading and long-term investment is not the same thing and they're the opposite of each other.

 Don't mislead newbies for them to think that trading is good. You sound more like a trader for talking about maximizing profits and mitigating losses, when a brand new investor should only focus on buying with DCA a d continue building his bitcoin stash over time.

You are to only invest with part of your discretionary income and set up an emergency funds and other backup funds along side as your are building your bitcoin investment. Your emergency funds should be at least least three months of your monthly expenses and don't buy bitcoin when you don't have discretionary income or don't sell with the hope to buy back to increase your bitcoin portfolio.

Yes, it's true that both trading and investing are not the same, but however, we can't disprove the fact that both have unique similarities, and the need for risk management is one similarity both investing and trading have in common, including the fact that everybody who goes into the two do so with the goal of making profits, and likewise it both involves the risk of financial loss. So he bringing in "Risk management" was not a misconception or neither was he trying to mislead newbies in any way.

We are not talking about trading in this thread and/or needs to make comparisons, including that arguably profits remains less of a focus for the investor, so your attempt to simplify that they both are seeking profits is misleading at best...and also, it gets a bit irritating when guys focus on profits when they are in the early stages of building up their bitcoin holdings  - hopefully in the context of investing and at some point establishing a 4-10 year or longer investment timeline.

[edited out]

Investing is different from trading bitcoin, they don’t have the same approach. I can tell you that everyone who goes into trading of bitcoin is doing that purely for making profits but Is not everyone who go into bitcoin investment for profit making as there are those who invests in bitcoin to secure their wealth and have financial freedom, privacy and control of their money. And if you’ve heard about the term “Hedge against Inflation” then you can agree with me that not everyone who invests in bitcoin for profit making. There are those who see bitcoin as a store of value and  to provide  them a hedge against inflation where by traditional fiat currency are being devalued as a result of some factors caused by economic instability, inflation, and probably some government policies as to the use of traditional fiat currency.

I doubt that satoshi got into bitcoin for profits, and surely there are other people who believe that they got into bitcoin for similar reasons as Satoshi, which is difficult to argue to be a "profit-oriented" approach to bitcoin.

[Sammysmart001]

How many times do I have to repeat that he ONLY needs discretionary income to get started, but you want to pollute this thread with vague assertions that he needs to know other things about wallets and vague ideas of "basic knowledge" that you don't even define before he can get started?

Why can't the beginner bitcoiner decide on his own whether he can start or not based on his having discretionary funds?

Why most people do stay on the sidelines forever, is the over complicating of the start.

One don’t need to master everything all, to buy your first $10! Your aren’t expected to master economic models,wallet security theory or even charts.

The possibility which the lack of technical knowledge will ever stop people from building wealth, overthinking stops far more than a lack of knowledge will ever.
When a user have paid off his/her basic need off and has spare cash left, practice teaches faster than reading theory for months, buying a small piece of bitcoin will teach you way far than a theory will do. This because action really builds understanding, this practical is just as simple…. You spare cash in …. You hold and you learn through all this processes as you grow.