JJG’s Outline of Bitcoin Investment Ideas

[Charcol]

I agree with you but to some point or some level it is not good to be aggressive especially when someone is new in Bitcoin investment, they need to be careful and invest gradually using the DCA method which is mostly preferable for beginners and the reason why newbie or beginners should not be aggressive is because they are still fragile and as the name implies "newbie" they are still new so it won't be wise to be aggressive as they can easily make mistakes but as for old folks being aggressive is not wrong provided it is coming from one's discretionary.

Of course, a newbie cannot be aggressive in his bitcoin purchase because he has to build up his emergency funds and other backup funds in place first before he can start buying aggressively because it's the size of your discretionary income and emergency funds that will determine your level of aggressiveness.

However, a newbie who is new into bitcoin but has othe assets and not new into investing. For instance, a rich guy. He can choose to buy aggressive because he already has some business/asset on ground that can serve as his emergency funds making it easy for him to invest aggressively based on the size of his discretionary income.

Your words are not false. Rather, I think that the criterion for being aggressive in investing is not the amount of wealth, but the regular income flow and the stability of that income. Those who have strong cash flow and are mentally prepared to hold it for the long-term can allocate relatively more. On the other hand, for new investors, a slow, disciplined and risk management based strategy is more sustainable.

I have a question in mind. If a wealthy investor also pours a large part of his total assets into Bitcoin at once, won't a major market correction create mental and financial pressure?

[cocadalcan]

I have trouble understanding what the purpose of analyzing the availability of other investments, as if we were easily distracted into wanting to dilute our bitcoin investment into some inferior places?

I'm only referring to the wealth you accumulate as a result of long term Bitcoin accumulation. Not some garbage called shitcoin. I only mentioned the availability of investment to explain Bitcoin holdings.

Sure, guys might come to bitcoin while already having various other investments, and other guys might come to bitcoin, and they don't have any other investments, so their only two asset classes are largely bitcoin and cash.  Are you suggesting that those guys who ONLY have bitcoin and cash should be analyzing the availability of other investments?   For what purpose?  To grow or to protect their investment?

The mathematical analysis is simply about analyzing the availability of a reasonable amount of funds you have available, the funds that come from discretionary income. The investment goal should be to secure Bitcoin holdings and continue to accumulate steadily over the long term which is for Bitcoin to grow. Balancing the equation between cash flow and Bitcoin accumulation.

Have these guys already sufficiently built up their cash reserves?  How is their bitcoin stash growing?  from their income or did they reallocate from other investments into bitcoin?

When taking the amount of cash reserve, we should come from discretionary funds I did not take a stand in favor of buying Bitcoin with funds kept for family because it is like playing a risky gamble and there may be a withdrawal situation for some reason. Nor am I stingy in giving importance to family. I slowed down my Bitcoin accumulating during the initial investment phase while building a cash reserve but maintained a weekly consistency. I increased the pace of Bitcoin accumulation as well, while continuing to grow the size of the reserve fund naturally.

How about you cocadalcan?  You have been registered here on the forum for two years (congratulations)?  Have you built your bitcoin stash during that time, or have you been wasting your time analyzing the availability of other investments in the past couple of years?  Have you figure out your bitcoin investment approach first, prior to getting distracted?  Have you made any progress in the past two years?

I personally run a small business and make a fairly good living but I can't spend much time on the forum due to the pressure of paying family bills. I freely admit that I have wasted a significant amount of my time in shitcoin. and as well as my available fund. The forum has taught me how to make Bitcoin investments more long-term through discretionary income. And I am grateful for that.

[alankasman]

Level of aggressiveness is measured based on discretionary income - not regular income.  Do you need an example?  Or maybe you need to explain why we would use regular income to figure out our level of aggressiveness?

This is quite true because both of these terms have their own meanings. Acting aggressively means using only the income we have freely. For someone to act in such a way is certainly a free way in terms of doing it in any way or at any time without disturbing their savings. Using these savings would certainly be a significant mistake for someone because these funds are not free funds that we can solely use. Savings are only used when we are in difficult times that befall us with various problems so the mechanism for using them is certainly different.

The saved funds are our assets that we already have so when someone wants to invest aggressively of course they do it with discretionary income meaning free funds without any ownership so their goal in doing it in a very aggressive way is to add to the number of assets they must have in the future so for them why they often do it using discretionary funds because these funds are for them to make as their capital in investing only to add to the saved funds because as I said above are saved funds as their assets for someone's future in achieving results with the aim of continuing to add to their assets even though they do it in the long term but what they want is the results of the investment that makes them increasingly add to the assets which are of course in ownership.

[cyberninja2]

Of course, a newbie cannot be aggressive in his bitcoin purchase because he has to build up his emergency funds and other backup funds in place first before he can start buying aggressively because it's the size of your discretionary income and emergency funds that will determine your level of aggressiveness.

This is the main point you said because for beginners must prepare everything for the interests in starting so that when the purchase occurs of course they still have funds to spend this is to be aware of things that are not appropriate for them to experience but apart from that I think in the future it will no longer be difficult for beginners because the thing about habituation will be something they have experienced in purchasing Bitcoin whether aggressively or in a normal way because if they do not do as we discussed here they make Bitcoin purchases only temporarily because the reason is that they have not been able to determine the level that is normalized to collect emergency funds which is the main point for them so I am more confident to do it first before making a Bitcoin purchase that may be too aggressive and this also does not mean it is impossible but do it according to the procedure in carrying out Bitcoin purchases in stages.

[sotelorene]

I agree with you but to some point or some level it is not good to be aggressive especially when someone is new in Bitcoin investment, they need to be careful and invest gradually using the DCA method which is mostly preferable for beginners and the reason why newbie or beginners should not be aggressive is because they are still fragile and as the name implies "newbie" they are still new so it won't be wise to be aggressive as they can easily make mistakes but as for old folks being aggressive is not wrong provided it is coming from one's discretionary.

Of course, a newbie cannot be aggressive in his bitcoin purchase because he has to build up his emergency funds and other backup funds in place first before he can start buying aggressively because it's the size of your discretionary income and emergency funds that will determine your level of aggressiveness.

However, a newbie who is new into bitcoin but has othe assets and not new into investing. For instance, a rich guy. He can choose to buy aggressive because he already has some business/asset on ground that can serve as his emergency funds making it easy for him to invest aggressively based on the size of his discretionary income.

Your words are not false. Rather, I think that the criterion for being aggressive in investing is not the amount of wealth, but the regular income flow and the stability of that income. Those who have strong cash flow and are mentally prepared to hold it for the long-term can allocate relatively more. On the other hand, for new investors, a slow, disciplined and risk management based strategy is more sustainable.

I have a question in mind. If a wealthy investor also pours a large part of his total assets into Bitcoin at once, won't a major market correction create mental and financial pressure?

Your first paragraph was really great but the last one is what I don't quite like because it can cause a lot of problem to newbie if not assimilate correctly, first I will want to answer your question with question which is " why would someone invest a large amount or large percentage of his or her asset into Bitcoin? Have you forgotten we are to only invest with our discretionary income which is leftovers? Well off cause if someone does that, they will surely panic or even sell at loss because it is not what they can afford to lose I mean it is not from their discretionary and it's not safe and wise to do that because it is gambling in other words.

[Saltysugar99]

This is the main point you said because for beginners must prepare everything for the interests in starting so that when the purchase occurs of course they still have funds to spend this is to be aware of things that are not appropriate for them to experience but apart from that I think in the future it will no longer be difficult for beginners because the thing about habituation will be something they have experienced in purchasing Bitcoin whether aggressively or in a normal way because if they do not do as we discussed here they make Bitcoin purchases only temporarily because the reason is that they have not been able to determine the level that is normalized to collect emergency funds which is the main point for them so I am more confident to do it first before making a Bitcoin purchase that may be too aggressive and this also does not mean it is impossible but do it according to the procedure in carrying out Bitcoin purchases in stages.

You yourself do not understand when to create an emergency fund, what is aggressive investing, and how to build a habit of accumulating Bitcoin.

If you have a discretionary income, then it is more important for you to start investing first. In addition to investing, you will create a backup fund. If you first finish creating an emergency fund and then think about investing in Bitcoin, years will pass but the habit will not formed, the investment will not be started also the opportunity is lost.

To build an investment habit, start investing with as little amount as possible from discretionary income, even if it is just for learning. Be it $10 or $20 once a week or $50 or $100 once a month, which is something that you can do consistently without any financial or mental stress.

And aggressiveness in investing means how much of your discretionary income you are investing. After starting, as time goes by, as one learns about Bitcoin, understands it, and increases their skills, they can invest as aggressively as they want. This will depend on how strong the person's discretionary cash flow is and how much they feel comfortable investing without feeling pressured.

[Bitcoin_Budha]

I agree with you but to some point or some level it is not good to be aggressive especially when someone is new in Bitcoin investment, they need to be careful and invest gradually using the DCA method which is mostly preferable for beginners and the reason why newbie or beginners should not be aggressive is because they are still fragile and as the name implies "newbie" they are still new so it won't be wise to be aggressive as they can easily make mistakes but as for old folks being aggressive is not wrong provided it is coming from one's discretionary.

Of course, a newbie cannot be aggressive in his bitcoin purchase because he has to build up his emergency funds and other backup funds in place first before he can start buying aggressively because it's the size of your discretionary income and emergency funds that will determine your level of aggressiveness.

However, a newbie who is new into bitcoin but has othe assets and not new into investing. For instance, a rich guy. He can choose to buy aggressive because he already has some business/asset on ground that can serve as his emergency funds making it easy for him to invest aggressively based on the size of his discretionary income.

Your words are not false. Rather, I think that the criterion for being aggressive in investing is not the amount of wealth, but the regular income flow and the stability of that income. Those who have strong cash flow and are mentally prepared to hold it for the long-term can allocate relatively more. On the other hand, for new investors, a slow, disciplined and risk management based strategy is more sustainable.

I have a question in mind. If a wealthy investor also pours a large part of his total assets into Bitcoin at once, won't a major market correction create mental and financial pressure?

Your first paragraph was really great but the last one is what I don't quite like because it can cause a lot of problem to newbie if not assimilate correctly, first I will want to answer your question with question which is " why would someone invest a large amount or large percentage of his or her asset into Bitcoin? Have you forgotten we are to only invest with our discretionary income which is leftovers? Well off cause if someone does that, they will surely panic or even sell at loss because it is not what they can afford to lose I mean it is not from their discretionary and it's not safe and wise to do that because it is gambling in other words.

Investment always needed significant awareness about consequences in any way while Bitcoin is volatile its also needed precautious never do anything in hurry or without having enough information about this because this can ruin anyone life recent decrease in price is also big lesson for those are looking for investment this can go either way.
I am here on this forum just 2 months, but I am studying this for nearly one year and now having some investment on this price because I am feeling good and lucky to have this price but still I have done all enough work to handle any situation because It's still not clear about how things works I always talk with my friends and talk them about safety first because without this it's always can go worst for anyone.

Everyone needs to check his all aspects and also done enough work before investment because doing emotionally never works while can increase problems in life.

[abaeze]

I have a question in mind. If a wealthy investor also pours a large part of his total assets into Bitcoin at once, won't a major market correction create mental and financial pressure?

Investment strategies sometimes change in the case of the rich and the poor, but if the plan is wrong, the loss is greater for the rich than for the common people. The rich may be able to absorb the loss, but for the poor, it becomes very difficult and they do not invest again later. In reality, in such a situation, both mental stress and financial risk are created very much, whether it is a rich or a common investor.

Since we are human, a big market correction affects all classes of investors mentally. Suppose someone invested 1 million dollars and the market fell by 50%, then negative things start coming to the investor's mind and at such a time many rich people panic sell and get out at a loss. As a result, the pressure also increases when the investment is large.

[Finebone]

I have a question in mind. If a wealthy investor also pours a large part of his total assets into Bitcoin at once, won't a major market correction create mental and financial pressure?

That is a higher level of craziness, or unwise things to do, and it's an action that I will always discourage, because it's not advisable to invest in bitcoin with an amount you can't let go. Because in a situation like that, if anything happens to his bitcoin investment, he might even contemplate suicide, so it's not a wise decision to take.
Furthermore, by taking such an action the said investor will always panic anytime their is a correction or dip in the market, but if he actually invested from his discretionary income, he wouldn't panic or go crazy if his investment did not work out as he expected it later on.

[Gost ms]

I have a question in mind. If a wealthy investor also pours a large part of his total assets into Bitcoin at once, won't a major market correction create mental and financial pressure?

At present, the Bitcoin market has become relatively large. If we talk about the future, the market is still in its initial stage. If a person buys a large amount of Bitcoin at once, then the market may go up, such as 1 million Bitcoin or 0.5 million, if a person buys Bitcoin at once, then there may be pressure in the market. Because the Bitcoin market is no longer in the situation of 2016 or 2018, if a person had bought Bitcoin in large quantities at that time, there would have been a lot of pressure. Now, a lot of money is needed to create a big pressure.

However, it will not be the right decision for every person to invest so much money at once. A person needs to invest within proper financial management. Whenever a person invests without proper financial management, he continues to try to bring danger.

[Sim_card]

I have a question in mind. If a wealthy investor also pours a large part of his total assets into Bitcoin at once, won't a major market correction create mental and financial pressure?

I believe that before a rich man will diversify majorly from his other assets into bitcoin means that he wants to preserve his wealth in bitcoin and most have studied about bitcoin and has confidence that bitcoin value increases overtime.

 Therefore, he is aware of the bear market and the bull run and the volatile nature of bitcoin. Therefore, a major market correction shouldn't create a mental and financial pressure on him since he's hodling for long term and understands how bitcoin investment works and did not sell a dime. It's when the rich guy doesn't understand how bitcoin works that can lead to panic and mental and mental stress.