JJG’s Outline of Bitcoin Investment Ideas

[Grease5000]

It is almost impossible for a person to be trading Bitcoin at the same time investing in bitcoin, because the main reason why a person will chose to trade is due to the fact that they are looking for quick profit, how did you think that  such person will be doing the both at the same time when all they think of is how they can make quick profit?

Even if such a thing exist, a day will come when the trader will be left with nothing in his trading account perhaps he might want to consider taking our few bucks from his Bitcoin investment especially if doesn't have any option left, so being an investor and a trader at the same time may not work.

Apart from the quick money mindset that we know traders for, if someone get into trading very deep, there is every tendency that, they can look for money to make sure they trade, so I don't know how such person will coup with both trading and investing properly as Bitcoin investor, both goals are different, one is short term goal and the other is long term goal, I think there must be an urge to also withdraw at profit at some point when he has not reached his over accumulation stage yet, even if he overcomes the temptation of withdrawing some amount along the line for trading purpose.

It  think becomes difficult to separate the two mindset if you are trading and accumulating Bitcoin at the same time. If your initial goal is to accumulate and hold bitcoin for the long term using discretionary income and a DCA strategy to accumulate bitcoin. Trying to make quick profit from the same bitcoin you are supposed to be accumulating for long term goal can easily make you lose focus,

and can even make you to change your approach towards it. You may change your initial plan  and can end  up as a result of trying to make quick profit try to predict the market or sell because you believe you can buy back at a cheaper price, and can  even  lead someone to use money meant for essential needs to trade. And before you know the focus has changed from long term Accumulation to short term goal.

For me I think it is better to focus only Long term  bitcoin accumulation, use discretionary income and the DCA or lump sum strategy depending on which suits your finance to accumulate bitcoin and hold for long term goal.

[Itz-prisigold]

I agree with your reasons on what can make someone sell off his assets prematurely. In addiction, these are also some other reasons I can think of:

* Some investor can likely panic in serious dip and sell at lost. This often happens to mostly the seasonal or the atmospheric investors that don't have plans of holding strong, they probably invested because they saw other people doing so.

Investors that always panic and sell their Bitcoin during dip are those that invested money they cannot leave untouched for long term.  The moment you invest with a money that is needed for your everyday expenses, unexpected bills or other important needs, then once the market price start crashing you'll be under pressure and start making decisions based on emotions. But If all your basic needs have been taken care of and you also set aside some funds for unexpected situations, then you'll be able to hold for long term.

This is why it's very important to only invest with your discretionary income.  When you invest with your discretionary income, a temporary price decline will not make you abandon your investment just because of unnecessary fear.

[Charcol]

Why do i need to worry myself with trying to choose between building my financial cushion and investing when I could just do both simultaneously and adjust the proportions as my financial situation continues to improve ?

When investing sometimes you have to make trade offs to stay within your ability. However, building a financial cushion and investing in Bitcoin are not mutually exclusive and you can do both in parallel. But you should not put so much money into Bitcoin that if its value drops significantly or your income suddenly stops, you would be forced to sell it to cover your essential expenses. In other words, you need to take the risk of forced selling into account.

Building an emergency fund and investing in Bitcoin is not an "either-or" choice. In fact, the two should go hand in hand. An emergency fund ensures you never have to sell your Bitcoin at the wrong time. The real problem isn’t Bitcoin itself. It’s putting all your money into it without a reserve. That’s speculation, not investing.
If you invest for the long term with money you can afford to lose and accumulate over time, you won’t be forced to sell when prices drop or your income stops. That’s a trader problem. They operate daily or weekly, so they have to worry about liquidation. With the right strategy, there’s no reason to fear forced selling.

An emergency fund is important because it reduces risk, but remember that it does not eliminate risk completely. Someone might have an emergency fund or cash buffer of two months' worth of expenses and is buying Bitcoin regularly. If they suddenly lose their job and don't have a new job or income for six months, then even if their emergency fund is depleted and they continue to have essential expenses, they may have to sell some of their Bitcoin even if they are a long-term investor. So forced selling is not only a problem for traders, but also for investors.

Traders may sell due to market conditions, while long-term investors may sell due to real-life cash crunches. Because the two situations are different, selling pressure can be created in both cases.

[Supreme Donvic]

I agree with your reasons on what can make someone sell off his assets prematurely. In addiction, these are also some other reasons I can think of:

* Some investor can likely panic in serious dip and sell at lost. This often happens to mostly the seasonal or the atmospheric investors that don't have plans of holding strong, they probably invested because they saw other people doing so.

Investors that always panic and sell their Bitcoin during dip are those that invested money they cannot leave untouched for long term.  The moment you invest with a money that is needed for your everyday expenses, unexpected bills or other important needs, then once the market price start crashing you'll be under pressure and start making decisions based on emotions. But If all your basic needs have been taken care of and you also set aside some funds for unexpected situations, then you'll be able to hold for long term.

This is why it's very important to only invest with your discretionary income.  When you invest with your discretionary income, a temporary price decline will not make you abandon your investment just because of unnecessary fear.

You are right, but we still have some people that use only their discretionary income to invest in Bitcoin but they also panic when there is a dip in bitcoin price.
I think the more reason why people usually panic when there is a dip in Bitcoin price is because they don't understand how bitcoin investment works, those that understand how bitcoin investment work will use only their discretionary income to invest in Bitcoin and they won't panic if there's a dip.
Before investing in Bitcoin people should learn to go through the history of Bitcoin growth, dip is something that has been happening since the creation of Bitcoin, i don't think it is something that should lead or cause panic anymore at this stage bitcoin is now.

[Gragebox]

Apart from the quick money mindset that we know traders for, if someone get into trading very deep, there is every tendency that, they can look for money to make sure they trade, so I don't know how such person will coup with both trading and investing properly as Bitcoin investor, both goals are different, one is short term goal and the other is long term goal, I think there must be an urge to also withdraw at profit at some point when he has not reached his over accumulation stage yet, even if he overcomes the temptation of withdrawing some amount along the line for trading purpose.

I also believe part of the problem comes from distinguishing what part of your funds is intended for investing versus trading. Trading is typically made up of short-term decisions, but generally speaking the only way to invest in Bitcoin is with the mentality of going long-term. However if an individual gets to involved with trading, there is also the possibility they would take from investment funds. That is how difficult it can be to not sell your Bitcoin when its price is fluctuating wildly.

I believe for myself and most individuals would have separate funds with definite goals for both accounts be more logical. A trading account for opportunity, and investment for holding; which cannot be accessed to take profits unless their strategy toward the long-term investment changes.

[AYOBA]

-There is a mindset and understanding problem that makes people sell early.
-Bad preparation and fund management.
-Lack of patience.

The above factors are the main reasons for selling Bitcoin, and if investors have at least one of these main factors, they can try as hard as possible to hold Bitcoin for a good time.

Yeah, that’s the truth the above factors you listed is what lead a lots of investors to sell their Bitcoin early instead for them to hold it for a long periods of time, they don’t know that the patience is the perfect key to the success but some of the investors are lack of it. Everyone knows that invest in the Bitcoin is the best, because there’s peace of mind that’s why everyone are rushing to purchase it, they don’t care what the market is all about they know that with time the market can do well in future.

[sotelorene]

What mostly causes selling off bitcoin before the actual long term investment goal is the use of funds that you can’t afford to loose or leave for a long period of time,I think what also causes that is the mindset of putting more funds so if there is an upturn, the profit will be more not knowing that in bitcoin investment it's better off to accumulate little by little than put more and the rest you keep as emergency funds is then not enough for your basic needs and emergencies, so at that point you will be let with no options than to sell off your bitcoin.

Using any funds someone can not afford to lose is gambling or trading and the folk should be ready to accept and be account for anything that may come up. It is very good for someone to use what they can afford to lose so they don't have to panic later. Putting more funds is not actually what makes people sell their... because you can decide to be aggressive with your Bitcoin investment when ever you see a Dip since Dip doesn't happen all the time.

[ejikeme24]

~snip~

Trading bitcoin is not advisable even for an investor who already has a sufficient bitcoin portfolio, because the psychology and mindset of a person who trades differs from that of an investor. Once you start trading as a long term holder, it can become difficult to maintain the separation. With time you’ll find yourself in a situation where you’ll have to take money meant for your investment to trade and sometimes in a bid to win back your money after losses you may even take part of your investment to trade and gradually before you know it you’re eroding your portfolio.
The biggest threat isn’t even the trading but how easily it can change the mindset and discipline of a long term investor.

I'm not advising anyone to go into trading, the reason why I Said that is because I know surely that some guys might want to give it a trial just to see how it works so I'm now suggesting that before they will think of to give trading a trial they should first of all grow Thier Bitcoin portfolio to a bigger level before looking into trading, and even though they are going to do that I will advice that they should trade with little amount since it's experiment they want to make. as for me, if I discover that there's discretionary funds available after which I have reach my investment target or the status of overaccumulation I would keep throwing them into my Bitcoin investment rather than trading with it or invest it in any inferior coin.

[Homemade-IQ]

, the reason why I Said that is because I know surely that some guys might want to give it a trial just to see how it works so I'm now suggesting that before they will think of to give trading a trial they should first of all grow Thier Bitcoin portfolio to a bigger level before looking into trading, and even though they are going to do that I will advice that they should trade with little amount since it's experiment they want to make.

Their no need trying trading when you already knows the final outcome, or are you trying to say that those that are going into trading do not know that trading is a losing game?

I think that it is wise to learn from other people mistakes by staying away, and use that money you want to waste and invest in bitcoin instead, than going into trading where you will still lose in the end, so their is nothing there to give it a try, especially when you don't have a reasonable size of Bitcoin accumulated already.

[Rockstarguy]

Investors that always panic and sell their Bitcoin during dip are those that invested money they cannot leave untouched for long term.  The moment you invest with a money that is needed for your everyday expenses, unexpected bills or other important needs, then once the market price start crashing you'll be under pressure and start making decisions based on emotions. But If all your basic needs have been taken care of and you also set aside some funds for unexpected situations, then you'll be able to hold for long term.

This is why it's very important to only invest with your discretionary income.  When you invest with your discretionary income, a temporary price decline will not make you abandon your investment just because of unnecessary fear.

This is true about why investors are unable to hodl Bitcoin: they didn't start with the supposed funds they needed to invest in Bitcoin. Some investors also lack the self-discipline to hodl Bitcoin for the long term. Sometimes investors invest with the right funds, but the challenge of why they can't hodl for long is that they haven't built up that long-term mindset. Just like when Bitcoin's price was low and the price movements were slow, there were some investors who were very worried about it.

Some investors sold their Bitcoin; some, even in a panic, managed to hodl, while other investors understood the market, knowing that at a point like that, the ideal thing to do is to buy more Bitcoin. The issue of buying Bitcoin with money that is not supposed to be used is not only a challenge, but the discipline to hodl is even the main problem. If investors can work more on self-discipline, they will be able to achieve long-term hodling.

[The Founding Titan]

What mostly causes selling off bitcoin before the actual long term investment goal is the use of funds that you can’t afford to loose or leave for a long period of time,I think what also causes that is the mindset of putting more funds so if there is an upturn, the profit will be more not knowing that in bitcoin investment it's better off to accumulate little by little than put more and the rest you keep as emergency funds is then not enough for your basic needs and emergencies, so at that point you will be let with no options than to sell off your bitcoin.

Using any funds someone can not afford to lose is gambling or trading and the folk should be ready to accept and be account for anything that may come up. It is very good for someone to use what they can afford to lose so they don't have to panic later. Putting more funds is not actually what makes people sell their... because you can decide to be aggressive with your Bitcoin investment when ever you see a Dip since Dip doesn't happen all the time.

A person doesn't need to buy bitcoin with more than they can afford to lose before they are called traders, infact a trader can trade with what they can afford to lose, so it's not about the money you are using but more about how you are using it.
A trader wants short term profit, they can do this within the means of their discretionary income, they can do it outside their discretionary income but stvthe end of the day it's all short term. An investor buys bitcoin with what they can afford to lose from their discretionary income and hold for long but it's not just a one time buy, they make sure to buy repeatedly over time for years, they do this to grow their holdings because if you buy 1 BTC, you can hold for as long as you want and while the value might increase it will still only be 1 BTC, buying repeatedly makes sure the amount of bitcoin you have increases.

[devouring-DARKNESS]

Why do i need to worry myself with trying to choose between building my financial cushion and investing when I could just do both simultaneously and adjust the proportions as my financial situation continues to improve ?

When investing sometimes you have to make trade offs to stay within your ability. However, building a financial cushion and investing in Bitcoin are not mutually exclusive and you can do both in parallel. But you should not put so much money into Bitcoin that if its value drops significantly or your income suddenly stops, you would be forced to sell it to cover your essential expenses. In other words, you need to take the risk of forced selling into account.

An investor that sells because the price of bitcoin dropped? There is no such thing, the truth of the matter is that the person was never an investor in the first place. And when you talk about being forced to sell in order to cover your essential expenses you make it sound like you invest with money meant for your essential expenses, is that what you do? An investor invests with their discretionary fund, not money meant for paying bills, don't make the mistake of ignoring your essential expenses because you want to buy bitcoin because you will definitely be forced to sell.
Anyone who is unable to generate discretionary fund shouldn't be investing in bitcoin, instead they should focus more on being able to generate discretionary fund, if this takes time then so be it, better than having to buy bitcoin outside of your discretionary fund only for you to end selling later and most likely at a loss.

[Soldroplet]

An investor that sells because the price of bitcoin dropped? There is no such thing, the truth of the matter is that the person was never an investor in the first place. And when you talk about being forced to sell in order to cover your essential expenses you make it sound like you invest with money meant for your essential expenses, is that what you do? An investor invests with their discretionary fund, not money meant for paying bills, don't make the mistake of ignoring your essential expenses because you want to buy bitcoin because you will definitely be forced to sell.
Anyone who is unable to generate discretionary fund shouldn't be investing in bitcoin, instead they should focus more on being able to generate discretionary fund, if this takes time then so be it, better than having to buy bitcoin outside of your discretionary fund only for you to end selling later and most likely at a loss.

I agree with your statement that you should not use your daily expenses money to buy Bitcoin. In my opinion, it is not that you cannot start saving Bitcoin if you have little extra money. Rather, those who have extra money can start with a small amount according to their ability and should have a strong emergency fund as soon as they start buying Bitcoin. Because, you don't have to sit around for a perfect situation; but it is mandatory to have a basic safety net. You should create your cash flow and backup fund in such a way that even if the price of Bitcoin drops, you don't have to sell the saved Bitcoin.
@JayJuanGee Sir always strongly says that the only prerequisite for investing in Bitcoin is 'extra money' or surplus money. If someone buys Bitcoin with his daily expenses money, it is not an investment, but a gamble.
So, rather than waiting for perfect financial conditions, the goal should be to accumulate Bitcoin using the extra money you have on hand within your means and strengthen cash flow management over time.

[Princess Leah]

An investor that sells because the price of bitcoin dropped? There is no such thing, the truth of the matter is that the person was never an investor in the first place. And when you talk about being forced to sell in order to cover your essential expenses you make it sound like you invest with money meant for your essential expenses, is that what you do? An investor invests with their discretionary fund, not money meant for paying bills, don't make the mistake of ignoring your essential expenses because you want to buy bitcoin because you will definitely be forced to sell.
Anyone who is unable to generate discretionary fund shouldn't be investing in bitcoin, instead they should focus more on being able to generate discretionary fund, if this takes time then so be it, better than having to buy bitcoin outside of your discretionary fund only for you to end selling later and most likely at a loss.

It shouldn't be suprising but i understand your reaction cause if someone say he/she is an investor then things like that shouldn't pressure the person into selling at lose, such kind of thing only occur when the person is still very new into Bitcoin, some newbies aren't fully convinced that holding longer is a better option which is why volatility still get at them.

 In Bitcoin investment, mistakes as such is inevitable for some people, many of us might have sold at lost in the past before we realised that selling during a dip is selling at lose so people who do such would definitely realised their mistake on the long run and learn to do the right thing which is holding firm even times when the price go dipper.

[GeorgeJohn]

-There is a mindset and understanding problem that makes people sell early.

We have two kinds of investment structures in bitcoin but it's left for the investor to choose the one that benefit the investors..we have long-term investment and short-term investment,  if investor is into long-term investment, the investor will not bother to sell it bitcoin early, whereas if the investor is into short-term investment, it already had in mind to sell as quick as he wanted, because it doesn’t want to make losses....

-Bad preparation and fund management.

This is another factor that make people to be curious to sell early, when the investor lacks risk management, it will put the investor under panic for it's investment..especially when an investor borrow and invest.

-Lack of patience.

Someone who is impatient for its investment, it's neither the person is a newbie towards the concern investment, or the investor borrowed and invest and it doesn't want to lose..these i mentioned is two factors that's behind lack of investment patient and panicking to sell out their investment...

[Rockson1]

An investor that sells because the price of bitcoin dropped? There is no such thing, the truth of the matter is that the person was never an investor in the first place. And when you talk about being forced to sell in order to cover your essential expenses you make it sound like you invest with money meant for your essential expenses, is that what you do? An investor invests with their discretionary fund, not money meant for paying bills, don't make the mistake of ignoring your essential expenses because you want to buy bitcoin because you will definitely be forced to sell.
Anyone who is unable to generate discretionary fund shouldn't be investing in bitcoin, instead they should focus more on being able to generate discretionary fund, if this takes time then so be it, better than having to buy bitcoin outside of your discretionary fund only for you to end selling later and most likely at a loss.

Investors without proper planing can put themselves into panic when emergencies occurs, once an investor sell to cover up essential expenses as you already said, it means that such investor did not invest rightly, because before you invest in Bitcoin, your essential need should have been taken care of first, after then your discreationary income can be figured out for your investment, some people are not ready to abide by the roles, perhaps that is the reason, they put themselves on pressure, there is no where it was written that people should invest above their means or their discreationary income, investing above your capacity is no longer an investment, but gambling, people forget that consistency what we all need as investors, the amount we invest with counts but what if you can afford it, it is better we concentrate our discreationary income irrespective of how small it is, and look for a way to increase it, if possible, than making investment mistakes all in the name of investing higher amounts.

[Primark]

Why do i need to worry myself with trying to choose between building my financial cushion and investing when I could just do both simultaneously and adjust the proportions as my financial situation continues to improve ?

When investing sometimes you have to make trade offs to stay within your ability. However, building a financial cushion and investing in Bitcoin are not mutually exclusive and you can do both in parallel. But you should not put so much money into Bitcoin that if its value drops significantly or your income suddenly stops, you would be forced to sell it to cover your essential expenses. In other words, you need to take the risk of forced selling into account.

Building an emergency fund and investing in Bitcoin is not an "either-or" choice. In fact, the two should go hand in hand. An emergency fund ensures you never have to sell your Bitcoin at the wrong time. The real problem isn’t Bitcoin itself. It’s putting all your money into it without a reserve. That’s speculation, not investing.

An emergency fund is definitely important because it gives an investor more flexibility. That doesn't mean that having an emergency fund means you never have to sell Bitcoin. In real life, there may be situations where you need extra money even after your emergency fund is gone.

Someone loses their job or their income stops completely. They may have an emergency fund equivalent to three months of expenses. But if they don't get a new job or income after three months, they may be forced to sell.

So the key is that an investor doesn't get into a situation where they have to sell Bitcoin to cover expenses.