JJG’s Outline of Bitcoin Investment Ideas

[Homemade-IQ]

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....

I don't think that their is anything as short term investors, it's either you are a trader that buy and sell once the price appreciate in value, or you are a holder that is only thinking of long term, so I don't think their is anything as short term investors.

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 ut their investment...

Your explanation here is just too confusing mate, please try to be more clear in your write up, so that someone will not misunderstood or misquote your statement.

[ejikeme24]

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....

I don't think that their is anything as short term investors, it's either you are a trader that buy and sell once the price appreciate in value, or you are a holder that is only thinking of long term, so I don't think their is anything as short term investors.

Yes, Short term and long term investment do exist. However short term investment last for less than three to five years while Long term investment are held for five to ten years or more. So an investor have the right to decide if they are going to hold Thier Bitcoin for 5-10 years or more or they will only invest for Short term that's 3-5 years depending how patient they are,and also the stash of bitcoin a person intend to accumulate will determine how Long he or she would stay in the accumulation journey.

[devouring-DARKNESS]

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.

A person can't just automatically have a strong emergency fund soon after they start investing in bitcoin, for an average person it will take something close to a year or even more than a year for them to save up to 3 months worth of emergency fund, so she could include their investment also coming from their discretionary fund you begin to realize that none of these things can happen fast, they take time and that's one of the reasons who we do these things with our discretionary income.
A perfect financial condition to invest in bitcoin is for a person to be able to generate discretionary funds, once this has been achieved bitcoin investment becomes a possibility rather than just a wish but if a person is unable to generate discretionary funds they should make sure to work on being able to generate first before they think about investing in because without your discretionary fund you will not be able to sustain your investment.

[Jostern]

There is no certain amount that someone is supposed to have before they can start accumlating bitcoin. With the DCA strategy you can start accumulating bitcoin using as low as $10 provided it is your discretionary income. So it is wrong to say that , the reason why most investors fails to hold bitcoin for a long time is because they started with an amount they are not supposed to. There is no fixed amount that am investor is supposed to invest in bitcoin. People should always invest in bitcoin based on there financial capacity. Holding bitcoin for a long time required patients, risk tolerance and a good financial management.

It’s very important to invest within our means, considering that we have some amount of money as a discretionary income it’s better to invest that money immediately instead of waiting for something else like having a huge amount of money before you can get started, while you can start buying bitcoin as small as your discretionary income, exceeding our discretionary income is a wrong move which is why is very ugly not to start investing within our means instead of waiting for a dip or waiting to have huge amounts before an individual can get started with investing in bitcoin.

[Sobz]

-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....

Investing bitcoin involves hodling and ypu can only hodl for longterm for the investment to yield good profit. Hodling short-term their are so many uncertaintites that can occur and you are not sure what the value of the market would be like in a short term.  Their are good chances of having a better investment in longterm because the future of the market cant be as the same as today. Normally bitcoin investment is a longterm investment,  many who tries to go in short-term ends in selling at lose or very small profit. Longterm investment is a profitable investment, it will be more better for one to prepare and go into trading than to have it in mind to go into a short-term investment because this is risky for investment.  Trading is always a short-term to make some bulks from the volatility of the market but it is difficult to make good value from a shorter investment.

[Cyber_warrior]

It’s very important to invest within our means, considering that we have some amount of money as a discretionary income it’s better to invest that money immediately instead of waiting for something else like having a huge amount of money before you can get started, while you can start buying bitcoin as small as your discretionary income, exceeding our discretionary income is a wrong move which is why is very ugly not to start investing within our means instead of waiting for a dip or waiting to have huge amounts before an individual can get started with investing in bitcoin.

I think I will agree with you here. Investing is supposed to be done as soon as discretionary income is available, no need to waste any time, no need to think you have to wait to have a huge discretionary income, it's always a waste of time. Many people may feel like they are not having enough discretionary income as they want and they would go ahead to invest with non discretionary income neglecting some part of their expenses or prioritizing their investment over their necessary expenses. This kind of decision is very wrong.
No matter how tempted we become we should never ignore our necessary expenses to invest and always invest with what we can afford.

[Grease5000]

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.

I agree with the first point   you made that using money someone cannot leave invested for the long term can force someone to sell at the wrong time. However, I think you are wrong about investing a larger amount which I don't see as a mistake because an  investor with large discretionary income make prefer to use the lump sum strategy  if it fit his financial plans, same way those with little or irregular discretionary income may prefer the DCA strategy. An investor should not be afraid of putting more money into bitcoin if that money comes from their discretionary income and fits their financial plan.

The problem is not the amount someone  invest with because some   with big  discretionary income  make use of the lump sum strategy which enable then to make a one time huge purchase of bitcoin. I think the problem is in  investing beyond your capacity because of  the hope of making quick profits.
 
Long term investment should be about sustainability. Not about how much one invested the important is the ability to hold for a long term goal without putting your basic needs and emergency situation at risk.

[Gost ms]

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.

Those who already have an emergency fund may say that they have a strong emergency fund as soon as they start investing, but how can a person who does not have an emergency fund build a strong emergency fund as soon as they start investing? It takes a person some time to build an emergency fund and the investment and emergency fund are built in a balanced way. It is good to have at least 3 months of income in our emergency fund. Building a strong emergency fund as soon as we start investing may be an unrealistic statement.

Emergency funds have nothing to do with the decline in the price of Bitcoin. Emergency funds have to do with financial crises, if there is ever an unexpected financial crisis, then you do not have to sell your holdings and an emergency fund is created to deal with this crisis.

[Sally9256]

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.

Those who already have an emergency fund may say that they have a strong emergency fund as soon as they start investing, but how can a person who does not have an emergency fund build a strong emergency fund as soon as they start investing? It takes a person some time to build an emergency fund and the investment and emergency fund are built in a balanced way. It is good to have at least 3 months of income in our emergency fund. Building a strong emergency fund as soon as we start investing may be an unrealistic statement.

Emergency funds have nothing to do with the decline in the price of Bitcoin. Emergency funds have to do with financial crises, if there is ever an unexpected financial crisis, then you do not have to sell your holdings and an emergency fund is created to deal with this crisis.

Building an emergency fund always have something to do with your discretionary income, so when building your investment, that when you can also build your emergency funds. Some people suggest that you can divide your discretionary income into 3, that is for your investment, emergency funds and your reserve fund. With that your portfolio on all sections will be moving.

Emergency funds is necessary when building your investment, it have it own role to play, but make sure you don’t allowing building your emergencies funds delay your investment.

[The Founding Titan]

Yes, Short term and long term investment do exist. However short term investment last for less than three to five years while Long term investment are held for five to ten years or more. So an investor have the right to decide if they are going to hold Thier Bitcoin for 5-10 years or more or they will only invest for Short term that's 3-5 years depending how patient they are,and also the stash of bitcoin a person intend to accumulate will determine how Long he or she would stay in the accumulation journey.

The longest of your duration for a short term investment is just over the lenght of an average cycle and there is no guarantee that the price of bitcoin will be any higher than when you started buying (of course there is no guarantee no matter how long you hold), instead of calling it short term investment I will call it long term trading because that's what it is.
If you are not intending to accumulate and hold for long then you shouldn't really be considering yourself as an investor and also do t mislead newbies into thinking thst they can decide to invest under 5 years, even if I say to invest for at least 4 to 10, for an average investor this is still very much of the short side.

[ASloveapg]

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.

Those who already have an emergency fund may say that they have a strong emergency fund as soon as they start investing, but how can a person who does not have an emergency fund build a strong emergency fund as soon as they start investing? It takes a person some time to build an emergency fund and the investment and emergency fund are built in a balanced way. It is good to have at least 3 months of income in our emergency fund. Building a strong emergency fund as soon as we start investing may be an unrealistic statement.

Emergency funds have nothing to do with the decline in the price of Bitcoin. Emergency funds have to do with financial crises, if there is ever an unexpected financial crisis, then you do not have to sell your holdings and an emergency fund is created to deal with this crisis.

Building an emergency fund always have something to do with your discretionary income, so when building your investment, that when you can also build your emergency funds. Some people suggest that you can divide your discretionary income into 3, that is for your investment, emergency funds and your reserve fund. With that your portfolio on all sections will be moving.

Emergency funds is necessary when building your investment, it have it own role to play, but make sure you don’t allowing building your emergencies funds delay your investment.

We do not need to create an emergency fund before starting to invest, and we cannot continue to invest by ignoring the emergency fund all the time, because investment definitely requires security. However, we can start in this way that we can use our discretionary income to buy half of Bitcoin and the other half to build an emergency fund. There is no problem in starting the investment in this way, in fact, it can also be an effective method. Basically, until the emergency fund is built, we can use our discretionary income in 2 ways, and once our emergency fund is built, we can buy Bitcoin with our entire discretionary income. In fact, everything is possible to achieve through proper management, all you need is the right mindset.

[Charcol]

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....

I don't think that their is anything as short term investors, it's either you are a trader that buy and sell once the price appreciate in value, or you are a holder that is only thinking of long term, so I don't think their is anything as short term investors.

Yes, Short term and long term investment do exist. However short term investment last for less than three to five years while Long term investment are held for five to ten years or more. So an investor have the right to decide if they are going to hold Thier Bitcoin for 5-10 years or more or they will only invest for Short term that's 3-5 years depending how patient they are,and also the stash of bitcoin a person intend to accumulate will determine how Long he or she would stay in the accumulation journey.

You are right that there can be both short-term and long-term investments. However, according to your formula, defining the nature of investment only by a limit of three, five or ten years may be a complete oversimplification or may not apply to everyone.

You can hold Bitcoin for five years, but if your main intention is to sell it at a slight increase in price, then I think your behavior is not like long-term accumulation and this applies to me too. Again, someone else is investing for 2-3 years. But he continues to save regularly, does not panic even in temporary market declines and has no plan to sell before he needs to. I personally think that the behavior of such a person is closer to an investor than a trader.

Time frame is certainly important in long-term investments. But at the same time, it may be important to consider the investment objective, cashflow, risk tolerance and whether there is a plan to sell.

[Agbam]

It’s very important to invest within our means, considering that we have some amount of money as a discretionary income it’s better to invest that money immediately instead of waiting for something else like having a huge amount of money before you can get started, while you can start buying bitcoin as small as your discretionary income, exceeding our discretionary income is a wrong move which is why is very ugly not to start investing within our means instead of waiting for a dip or waiting to have huge amounts before an individual can get started with investing in bitcoin.

I think I will agree with you here. Investing is supposed to be done as soon as discretionary income is available, no need to waste any time, no need to think you have to wait to have a huge discretionary income, it's always a waste of time. Many people may feel like they are not having enough discretionary income as they want and they would go ahead to invest with non discretionary income neglecting some part of their expenses or prioritizing their investment over their necessary expenses. This kind of decision is very wrong.
No matter how tempted we become we should never ignore our necessary expenses to invest and always invest with what we can afford.

I think that most people understand that what they need to invest in bitcoin is discretionary money but what hinders them  is greed and the drive for profits. Investors who are more profits oriented will want to wait and time the market for when they’ll be able to maximise their entry.

Basic expenses should always come first for everyone and this isn’t just an investment strategy or knowledge. It’s a basic economics knowledge “NEEDS BEFORE WANTS”.