JJG’s Outline of Bitcoin Investment Ideas

[Nheer]

I think the basic knowledge he's talking about is to know how to accumulate Bitcoin not everyone knows that so it is very important for people who wants to go into bitcoin investment to know how to accumulate Bitcoin and the right place to accumulate it, do you know we have some people who are accumulating their bitcoin and holding it on an exchange which is very bad so the basic knowledge we teach you or will tell you how to accumulate and were to hold your Bitcoin which is wallet.
You cannot take away the importance of having a basic knowledge before you start bitcoin investment it is very important for all beginners and so everyone who wants to start should at least have the basic knowledge about bitcoin investment.
And this are the reasons.
1. So you will know how to accumulate Bitcoin
2. Were to accumulate and hold it.
3. The fund's to be used.

You make it sound as if having basic knowledge and understanding how to accumulate and knowing the best wallet to use is something complicated that takes time to learn. This is something that can be done easily. Anyone with common sense should be able to figure out their discretionary income and a person can start investing using a a reputable exchange to store your Bitcoin at first and as the investment is ongoing they can figure out which wallet is best for long term holding. The risk with exchanges is usually when you hold your coins there for a long period of time. So basically there's no reason to delay your investment just to have basic knowledge. You should invest as soon as your expenses are sorted and you have discretionary income left. Every knowledge can be pursued while your investment is ongoing so stop misleading people in here.

[Brizi5000]

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yet there are also so many folks who likely would be advantaged towards realizing that they are likely going to be accumulating bitcoin for more than 10 years, and when they are in their first 4-6 years of accumulating, they are likely better off to just ongoingly buy without holding back very much, except maybe just for logistical reasons involving their own comfort in any of their own ongoing cashflow management cushions.

I completely agree with you that the smartest thing to do is to accumulate Bitcoin without hesitation for the first 4-6 years. If you have a long-term (10+ year) goal, short-term price fluctuations really become secondary.

One thing I would like to add is that for new investors, in addition to keeping the logistics of cash flow in place, it is also important to keep the 'Opportunity Cost' in mind. According to data, the market is much more dynamic in the years immediately following the Bitcoin 'Halving Cycle' (i.e. around 2025-2026). Leaving cash idle during this time can lead to missing out on the benefits of a bull market.

So in my opinion, those in the first 4-6 years can immediately allocate a large portion of the additional funds (like 50%-60%) like bonuses along with the ongoing DCA at the beginning of the cycle and keep the rest as emergency liquidity. This will not only provide logistical convenience, but also prevent cash depreciation.

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There's no unanimously agreed back up fund level as it varies and depends on individual financial class. If you can cover most of your expenses and emergencies for at least 4 weeks and beyond without touching your bitcoin, then you're good to start gradually.

Ignoring an emergency fund is not misleading but it is also like financial suicide. The key to investing in a volatile asset like Bitcoin is surviving for a long time. Without a fund people are likely to panic or be forced to sell assets at a loss during market downturns. This ruins the potential for long-term gains from Bitcoin.

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

However real-world experience suggests that 4 weeks of funds are not enough for a high-risk asset like Bitcoin. If you enter crypto without least 3 to 6 months of living expenses saved up you may have to sell Bitcoin at a loss in the event of a major personal emergency, such, as job loss or medical expenses.

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

firstly i think is important to just keep the conversation In Bitcoin and not using vague term ‘Crypto’ to associate bitcoin because it could be misleading newbies to invest in an shitcoin  and beside this is bitcoin discussion and not crypto as using crypto could means any shitcoin.

reading through the end of your statement you’re largely suggesting that folks will have to build 3-6 months back up funds or emergency funds before starting to invest in bitcoin which i see as a statement that will be frightening newbies and misleading them not to get started in bitcoin investment even though they have their discretionary income ready. Not downplaying the importance of the emergency or back up funds in bitcoin investment as it is an important part of our investment to protect it from not getting sold when in an emergency situation. But however i still think that not having the emergency funds of 3-6 months readily available shouldn’t be a barrier for not getting started, it’s advisable they can start accumulating bitcoin once they have discretionary income ready and along the line they should try to be building the emergency or back up funds in such a way that they can be using some percentage or their discretionary to buy bitcoin and keep some percentage of it for their emergency or back up funds and be consistent in trying to figure out a discretionary income to use in the bitcoin investment to reach their accumulation target and hold for a long term practice.

[cocadalcan]

When how to make use of your income is figured out, then you will know how to manage your funds in such a way that you won't have a problem knowing the amount to allocate to the investment, all this needs to be figured out, but for anyone who wants to make use of the DCA, they should know that they need to follow the steps. Just that one of the most important things before anything else is the income, followed by knowledge if the person is a newbie, and I don't see how you want to invest without having the basic knowledge. We know money is also important, but you have to start with the basics. When the plan for income allocation is already in place, then that way, even the investor will enjoy using DCA.

Accumulation of bitcoin is not that deep. It has been discussed here and not like a rocket science or some calculus problems. it’s just for you to have a regular cash flow, identify your Discretionary income, have your emergency  funds  set aside and start your accumulation with  either  the DCA strategy  or the lump sum  it all depends  on your  financial state.
I don't know what basic knowledge  one need to know before investing, Bitcoin investment is one of this easy  going investment out there so long as you're doing it the right way.
 

I also think that accumulation Bitcoin is not a difficult thing if you have any amount of discretionary income every week. But being consistent is important because if your fund are small, you have to focus on being consistent. It will not be as easy to carry Bitcoin as you think if you do not have a regular source of income or multiple sources of income. A person does not understand the torment of poverty until he reaches that stage. If you are financially well-off, you will not be able to understand how difficult it is for the poor to meet their basic needs.

To be honest, saving Bitcoin is difficult but it is complicated for those who have the mental preparation to trade and the mindset of getting rich in a short time. Those who suffer in investing are those who do not have a risk-tolerant fund system and panic when the price drops.

[New Judgement]

I think the basic knowledge he's talking about is to know how to accumulate Bitcoin not everyone knows that so it is very important for people who wants to go into bitcoin investment to know how to accumulate Bitcoin and the right place to accumulate it, do you know we have some people who are accumulating their bitcoin and holding it on an exchange which is very bad so the basic knowledge we teach you or will tell you how to accumulate and were to hold your Bitcoin which is wallet.
You cannot take away the importance of having a basic knowledge before you start bitcoin investment it is very important for all beginners and so everyone who wants to start should at least have the basic knowledge about bitcoin investment.
And this are the reasons.
1. So you will know how to accumulate Bitcoin
2. Were to accumulate and hold it.
3. The fund's to be used.

a person can start investing using a a reputable exchange to store your Bitcoin at first and as the investment is ongoing they can figure out which wallet is best for long term holding.

I don’t think this is a wise decision for intending investors, if you have been able to get to the point where you are able to buy bitcoin from an exchange, I don’t see what will delay you from setting up a wallet and withdraw your assets from the exchange. If you don’t know the wallet to use, you can always use google to search for reliable wallet to store your bitcoin, or if the investor is a forum user, the person can ask question and reliable wallets will be suggested. Storing a sizable bitcoin in an exchange is never advisable, it doesn’t matter if you intend holding it there for a short period, because we never can tell what will happen the next minute.

The risk with exchanges is usually when you hold your coins there for a long period of time.

I don’t fully agree with this, things can get complicated within a twinkle of an eye. Haven’t you heard stories of people who stored bitcoin in an exchange today and the next day something bad happened to the exchange? You never can tell when exchange is going to be attacked or when there’s going to be a policy change from the exchange that might affect you. Always withdraw your bitcoin when you get the opportunity and never wait for the next minute or hour.

[BluebloodCXVI]

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

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

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

[Shadiq]

I don’t fully agree with this, things can get complicated within a twinkle of an eye. Haven’t you heard stories of people who stored bitcoin in an exchange today and the next day something bad happened to the exchange? You never can tell when exchange is going to be attacked or when there’s going to be a policy change from the exchange that might affect you. Always withdraw your bitcoin when you get the opportunity and never wait for the next minute or hour.

You are right that you should not delay withdrawing money from the exchange without any reason. However, the exchange is actually not as risky as you claim it to be. We should keep our money away from the exchange as much as possible, but if necessary, there is no big risk in depositing small amounts of money for a short period of time in some trusted exchanges.

Although we have already become familiar with the incidents of some exchanges being hacked. Just as there is a risk of losing money in the exchange, there is also a risk in self-custody exchanges. The only difference is that in the exchange, money can be lost due to the exchange's mistake or your own mistake, while in the self-custody wallet, money can be lost due to your mistake. No matter what we do, there will be risks. Basically, we need to have a plan to overcome those risks.

Especially avoid keeping large amounts of money in the exchange, do not store it for a long time, even if it is a small amount. Do not keep money in the exchange for no reason.

[Primark]

As far as getting started is concerned, all a newbie needs is to figure out if there is discretionary income that is available for them to invest with. Once they have been able to figure out there discretionary income then they start accumulating bitcoin. So with common sense a newbie can be able to figure out if they have discretionary income to invest with and not necessarily a basic knowledge as you have pointed out.

When how to make use of your income is figured out, then you will know how to manage your funds in such a way that you won't have a problem knowing the amount to allocate to the investment, all this needs to be figured out, but for anyone who wants to make use of the DCA, they should know that they need to follow the steps. Just that one of the most important things before anything else is the income, followed by knowledge if the person is a newbie, and I don't see how you want to invest without having the basic knowledge. We know money is also important, but you have to start with the basics. When the plan for income allocation is already in place, then that way, even the investor will enjoy using DCA.

You say "basic knowledge" as if acquiring knowledge is the main condition for beginners. I want to inform you that there is no obligation for beginners to learn everything first. If someone can understand their own expenses, risks and capabilities and set aside discretionary income, then they can start with a small amount. In such a situation, the so-called basic knowledge should not be a barrier to starting their investment. Because learning is an ongoing process, where they will continue to invest and learn unknown things about Bitcoin.

I think the basic knowledge he's talking about is to know how to accumulate Bitcoin not everyone knows that so it is very important for people who wants to go into bitcoin investment to know how to accumulate Bitcoin and the right place to accumulate it, do you know we have some people who are accumulating their bitcoin and holding it on an exchange which is very bad so the basic knowledge we teach you or will tell you how to accumulate and were to hold your Bitcoin which is wallet.
You cannot take away the importance of having a basic knowledge before you start bitcoin investment it is very important for all beginners and so everyone who wants to start should at least have the basic knowledge about bitcoin investment.
And this are the reasons.
1. So you will know how to accumulate Bitcoin
2. Were to accumulate and hold it.
3. The fund's to be used.

The basic knowledge that you are talking about is actually an excuse not to start investing. Because it is not a bad thing to let the exchange accumulate money for learning at the initial stage. Because at the beginning, a person usually starts with a small amount. If you start with a small amount, you do not need to know everything on the first day. Simply put, if you give an investor the condition of learning basic knowledge at the beginning of investment, I doubt whether he will start investing under the mandatory pressure of learning. Starting to invest with an exchange is one thing and keeping a large amount of money in the exchange for a long time is another. If an investor who is just starting wants to start with a small part of his discretionary income, for example $20, then keeping it in the exchange is not a problem. He can keep it in the exchange for a certain period of time if he wants. When he is ready about the wallet, his own custody or his own security, he can take it in his own wallet. And this idea is not bad at all. Rather, this strategy does not allow delay for those who want to postpone investment under the pretext of basic knowledge.

[Livingleged]

I don’t fully agree with this, things can get complicated within a twinkle of an eye. Haven’t you heard stories of people who stored bitcoin in an exchange today and the next day something bad happened to the exchange? You never can tell when exchange is going to be attacked or when there’s going to be a policy change from the exchange that might affect you. Always withdraw your bitcoin when you get the opportunity and never wait for the next minute or hour.

It seems you got it wrong, he did made mention of acquiring  bitcoin  from exchange but also said you shouldn't  hold or keep them there for long. Exchanges  are the easiest  platform  to purchase  bitcoin  most especially  for those who are newly  introduced  to bitcoin. After acquiring  you can easily  move the coin to a more safer non costodial  wallet for safety  and fear of any complications.
And he also said reputable exchanges  not just anyone. I don't think there is anything wrong in using those  centralized exchange because  they provide  features  that make dealing with bitcoin  more easier  the only thing  I will be against  is you holding  your investment  there for long that is a very dangerous  game because  you are practically  not in charge  of those  asset someone  else  is holding  it for you via thief platforms.

[GhostOfBitcoin]

firstly i think is important to just keep the conversation In Bitcoin and not using vague term ‘Crypto’ to associate bitcoin because it could be misleading newbies to invest in an shitcoin  and beside this is bitcoin discussion and not crypto as using crypto could means any shitcoin.

In my previous post, the word 'crypto' was inadvertently used as a generic term, which somewhat obscured the singular and unique status of Bitcoin. I apologize for this unintentional mistake. In the future, I will be careful to limit the discussion to the technology and philosophy of Bitcoin. Thank you again for this valuable correction.

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But however i still think that not having the emergency funds of 3-6 months readily available shouldn’t be a barrier for not getting started, it’s advisable they can start accumulating bitcoin once they have discretionary income ready and along the line they should try to be building the emergency or back up funds in such a way that they can be using some percentage or their discretionary to buy bitcoin and keep some percentage of it for their emergency or back up funds and be consistent in trying to figure out a discretionary income to use in the bitcoin investment to reach their accumulation target and hold for a long term practice.

Brother Your idea is superb...  It is difficult for beginners to accumulate 3-6 months of funds at once and this can discourage them at the beginning. Your proposed parallel approach ( buying Bitcoin with a portion of discretionary income and gradually building an emergency fund with the other portion) is indeed a realistic solution. But my main fear was about a bear market. If someone is just starting out without any backup and suddenly faces a major personal crisis, they will be forced to sell their Bitcoin at a loss. So, while it is possible to start without being 100% prepared, it is important to keep a safety net in mind. The idea of ​​multi-tasking your savings will make your portfolio more flexible for beginners. What percentage of a new investor's discretionary income would be best balanced between risk and return if they allocated it to Bitcoin and what percentage to an emergency fund?

[Princess Leah]

I don’t fully agree with this, things can get complicated within a twinkle of an eye. Haven’t you heard stories of people who stored bitcoin in an exchange today and the next day something bad happened to the exchange? You never can tell when exchange is going to be attacked or when there’s going to be a policy change from the exchange that might affect you. Always withdraw your bitcoin when you get the opportunity and never wait for the next minute or hour.

Storing funds in an exchange whether long or short-term is still allowing a third-party to have access to your money, I know that not all exchanges are scam related but them investors should prioritize "self custody or nothing" they can purchase Bitcoin but send it to their no custodial wallet for long-term holding.

 Anyone who think storing their coins in an exchange is good is a trader cause that's what traders use for their activities and not long-term holders, it's good to hold but also very important to protect what you're holding and storing Bitcoin in an exchange is never a good way of storing it, it's very risky cause "thing can get complicated" like you said.

[Bright0515]

You cannot take away the importance of having a basic knowledge before you start bitcoin investment it is very important for all beginners and so everyone who wants to start should at least have the basic knowledge about bitcoin investment.

This whole bold part of your comment sounds more like you are trying to say that everyone need to acquire knowledge before they get started with but Bitcoin investment. But I think you are wrong there because waiting to acquire such knowledge will literally delay you from getting started.
What you actually need to buy buy Bitcoin with is just your discretionary income and your comment seems, while accumulating Bitcoin, with time you will learn all those basic things because practicing makes perfect.
If you don't really understand how to buy Bitcoin or the exchange or wallet to use, within few hours you can make thur research online or watch some YouTube videos then you will understand, it won't take much of there time. But waiting to acquire knowledge will delay.

One this you need to understand is that everyone don't need the same level of knowledge before they get started because not everyone is dull. As a matter of fact, some people focus on knowledge while some people focus more on tier goals, and those who focus more on their goal don't end up like these who want to acquire knowledge first before they get started.
From your post, you didn't talk about the fa that fear and greed along can make someone not achieve their targets on Bitcoin investment, you only talk about knowledge. One thing you need to understand is that learn never ends on Bitcoin investment because it is volatile, learning can never stop.

[Cyber_warrior]

Considering the current scenario, there are many reasons why the price of Bitcoin is likely to increase in the future, one of which is the possibility of it not being readily available in the future because the supply of Bitcoin is limited.

The exchanges will always have bitcoin for sale in their platforms because it’s business for them. Even if individuals don’t want to sell again in the future (which I doubt would ever happen) because there will never be a time when everyone would want to hold on to their bitcoin. There are those that will always stick with the ideology of trading no matter how you try to convince them to hold their bitcoin for long. So I don’t even see a future where one can’t find bitcoin to buy it’s almost impossible for that to happen. In economics they use to tell us that “Once there are willing buyers, there will be willing sellers.

You are right, Bitcoin's volatility will never stop. We cannot expect everyone to hold Bitcoin. Bitcoin is inherently volatile, driven by the actions of buyers and sellers. To keep the Bitcoin market moving, one party has to sell and the other party has to buy. If one party is not found in the market, the asset can be destroyed or become a worthless asset. Because, if no one sells Bitcoin, Bitcoin will have no value. To get value, you must sell.

The value of assets is determined by human demand and value is achieved through exchange. No asset will be an exception to this. Where this exception is seen, that asset is worthless. I do not think Bitcoin will ever become a worthless asset. Therefore, we can say that the value of Bitcoin may increase due to the shortage of supply, but there will be no possibility of not getting Bitcoin. If the price increases, someone will sell Bitcoin to take a profit.

There is also some value in terms of making sure that we are not keeping all of our bitcoin value on exchanges or held in various paper bitcoin products that might not even allow us to take immediate possession of the bitcoin.  Many of us can be mislead about the bitcoin price and the bitcoin value based on the ongoing practices of the 3rd parties who are providing access to various derivative bitcoin products that are not even real bitcoin, even if we might be able to withdraw and deposit bitcoin directly to such 3rd parties, yet at the same time, some of those 3rd parties could end up freezing our access to our coins or our abilities to transact in bitcoin or to cash out our bitcoin through our banks (in the event that we might have bank accounts linked to 3rd party bitcoin exchanges/product providers).  

I think a lot of people underestimate the importance of self custody because they don't fully understand the risk of keeping their coins in a 3rd party platform or maybe they just want to ignore it. Most people don’t really understand how these platforms work and many people only realize the risk after they have encounter a problem. Exchanges make everything feel convenient for you at first until something go wrong that's why we don't have to wait for an exchange to freeze withdrawals or restrict our access before knowing how risky they are.

The truth is that as long as a 3rd party controls your coins you can never have total control over your assets and at any moment your account can be restricted and you lose access to your funds without warning. So we shouldn't wait until something happens before we realize how important self custody is even when it come with more responsibility. We should always prioritize self custody because it's what makes us real owners of our investment.