JJG’s Outline of Bitcoin Investment Ideas

[Tetu100]

Without backup Bitcoin holding becomes your emergency fund and that is  weak structure for long term investment. An emergency fund is created from discretionary income but once an emergency fund is created it is no longer Bitcoin buying money.

This could be sounding so logical but if you can picture it from the right angle you will understand how helpful it could be especially for the long term investors.

However, @Saltysugar99 is just trying to make it clear that failure in setting up an emergency funds in our investment plan,  as in long-term precisely. Is like you've indirectly planed to resolve future issues from your investment holdings of which is very inappropriate as a long term investors. In as much as it's important to kick off an investment journey once the discretionary funds is at hand, it's also right will make every neccesary preparation ahead as to easily combat future challenges without touching our investment holdings and that's the goal, else we'll be forced to resolve real life problems from our investment holdings.

[JayJuanGee]

A method can never guarantee success but rather what will guarantee success in anything we do is how we approach things and the ability of those things to do great in the future. Just like in Bitcoin investment our success is dependent on how we approach Bitcoin with our strategy and the ability of Bitcoin potential to speedily increase in the future. If someone is using the DCA method and then due to a little change in price the person panic, it means they are not long term holder but a trader.

I can't agree with your comment. Because it is very natural for a new person to be afraid. A new person has never faced such a situation before and when they see their money slowly going towards loss then they will be afraid this is the case with about 80% of people. It is not that a person becomes a trader when they are afraid, that person is called a trader. The person who buys and sells in the short term is called their trader.

A new person needs to build so much faith in Bitcoin at the beginning that they do not decide to sell or sell even when facing a market decline. Gradually when they start to deal with the market decline and are able to deal with a big market decline then they can increase the amount of their investment

Fear is a natural phenomenon, feeling some kind of fear for a newbie is normal but what matters is what happens after the emotion, if you take action and sell … you’re panic selling and it’s either you didn’t invest with your discretionary money or you don’t trust bitcoin.

Selling is not part of this topic.

If guys cannot figure out how to ongoingly and persistently buy bitcoin, then maybe they need to go to some other topic, since it does not seem too difficult to me to figure out ways that guys are buying all of the time (weekly perhaps?) on a regular, persistent and consistent basis.  If guys are buying all of the time, then how does selling come up as a topic, absent some emergency situation that ends up depleting all of the back up funds.

Why people think that most of the people who sell are traders is because most of the time they’re actually traders who just gamble on price action.

How is talking about sellers, or what sellers do or what dumb people do on topic in this thread?

It is acceptable for a newbie to start investing with small amounts of his discretionary income until he’s confident enough or knows enough to invest big amounts so to avoid panicking and selling when he’s not supposed to. That’s why the phrase “invest with what you can afford to lose” is very relevant.

These are good points.  Even though bitcoin newbies can do whatever they like in terms of amounts, it tends to be better to start out  with an amount that is relatively smaller within their budget and then to get accustomed to the amount prior to making any adjustments to increase the amount, which hopefully will lead them from within their own judgement into considering how aggressive that they could invest into bitcoin without overdoing it.

[BluebloodCXVI]

Waiting for emergency funds before investing in bitcoin is not actually wise if someone has a discretionary income to start with. and secondly, discretionary income is money meant for our bitcoin i mean for someone who is into bitcoin and of this note, i do not think there is something wrong is someone decide to go all in with their discretionary since it is money they can afford to lose. the only time it will not be advisable is when someone try to use their expense money to go all in because there is dip, is very wrong.

part of the reason why is not advisable to use all your discretionary income to buy and invest in  bitcoin is because you’ll need some for emergency funds, back up funds and other nonessential spendings. Even though it’s a discretionary income I can’t tell you I’m using all of it to buy bitcoin because I have other discretionary spending although most of it I know I can boycott them because it’s simply optional but you can’t try to boycott an emergency funds or even a back up or reserve funds. Instead of going all in with your discretionary income it will be wise for such an investor to allocate part of his discretionary income into accumulating bitcoin and the other part for his emergency funds and other backup funds to keep him afloat in the long term investment.

Look bro, it all falls back to context and the financial situation of the person in question; they have the autonomy to decide when it is right for them to go all in with their discretionary income and when to hold back a bit, there’s no universal rule set in place for something like that.

Ok what If the person already has a significant buffer on the side before deciding to allocate a huge portion of their discretionary income into bitcoin? Huh!, would you still say it was a bad idea ?, i’m guessing No.

Nobody gives a shit about whether a guy chooses to use all his discretionary money to invest or use part of it, as long as he has some liquid buffer to rely on, i don’t see the issue here🤷‍♂️

[Queen uloma]

These are good points.  Even though bitcoin newbies can do whatever they like in terms of amounts, it tends to be better to start out  with an amount that is relatively smaller within their budget and then to get accustomed to the amount prior to making any adjustments to increase the amount, which hopefully will lead them from within their own judgement into considering how aggressive that they could invest into bitcoin without overdoing it.

You are very correct.and I totally agree with your points for bitcoin newbies I feel starting with a smaller amount that’s within their budget makes sense. Once they’re use to the amount and understand how bitcoin price moves, they can now decide on their own if they’re to increase it or not.  This approach can actually help them to know their own risk level rather than being in a rush to invest aggressively and later they will start regretting it. It’s their  financial capability that  will determine how much they can comfortably put into bitcoin.

[SmartCharpa]

We can arguably say there is guarantee of making profit when bitcoin is held over a long period of time. going by it’s behaviour and history, there has never been anyone that has come out to say that they held bitcoin for long time that didn’t get a reasonable return of investment, if it wasn’t guaranteed we won’t even be wasting our time advocating for long term storage, believe in bitcoin, believe in its long term holding rewards.

Man! You only know about the history of Bitcoin and how it has survived for the past decade, but you don’t know how what it future holds. So, how can you say that making a profit is guaranteed when you don’t know what the market will look like tomorrow? People believe in Bitcoin that its future will be better than today, but nobody can tell what the future holds. Believing in Bitcoin is part of the risk, so don’t encourage anybody to believe that profit from is guaranteed.

Don’t forget that the value of Bitcoin can go up and down. If everyone can say that making profit from bitcoin is guaranteed, I don’t think anyone would ever say they should invest what they can afford to lose. But there’s also a chance of losing money.

[Grease5000]

We can arguably say there is guarantee of making profit when bitcoin is held over a long period of time. going by it’s behaviour and history, there has never been anyone that has come out to say that they held bitcoin for long time that didn’t get a reasonable return of investment, if it wasn’t guaranteed we won’t even be wasting our time advocating for long term storage, believe in bitcoin, believe in its long term holding rewards.

I understand your point, but I think bitcoin's past performance doesn't guarantee future results, I may agree that it past history is one of the why most people invest in it,  sometime history don't repeat itself.

The focus should be to use discretionary income, accumulate bitcoin through a sustainable plan, and  hold for the long term if it appreciates over the years, that is  a possible outcome, not something that is guaranteed. Long term holding should be a plan not a guarantee strategy for profit.

[Princess Leah]

Look bro, it all falls back to context and the financial situation of the person in question; they have the autonomy to decide when it is right for them to go all in with their discretionary income and when to hold back a bit, there’s no universal rule set in place for something like that.

Ok what If the person already has a significant buffer on the side before deciding to allocate a huge portion of their discretionary income into bitcoin? Huh!, would you still say it was a bad idea ?, i’m guessing No.

Nobody gives a shit about whether a guy chooses to use all his discretionary money to invest or use part of it, as long as he has some liquid buffer to rely on, i don’t see the issue here🤷‍♂️

You're making sense cause both the liquid buffer (emergency fund) and discretionary funds and left over funds after settling essentials they're not same and if someone decides to go all in with the discretionary fund, as far as the emergency fund is not tampered with then it's the person's choice to do so, maybe if opportunity to buy very lower arises.

 People confuse the discretionary and emergency fund for same thing or that it's gotten from the emergency fund, they both from from same source which is the leftover of what's remaining are sorting important expenses. Moreover they serve their different purposes are shouldn't be confused for each other.

[Joeboy]

Waiting for emergency funds before investing in bitcoin is not actually wise if someone has a discretionary income to start with. and secondly, discretionary income is money meant for our bitcoin i mean for someone who is into bitcoin and of this note, i do not think there is something wrong is someone decide to go all in with their discretionary since it is money they can afford to lose. the only time it will not be advisable is when someone try to use their expense money to go all in because there is dip, is very wrong.

For the 1000th time, discretionary income isn't necessarily the same as the money one could afford to lose..And the more times you use the terms interchangeably, the more you could bring confusion to others who could be trying to learn.... Supposedly at the end of the month, you are left with like $200 as your discretionary income... Obviously it could be unrealistic to go all in since there are still other things to account for.. Things like making savings for Backup/or Emergency funds, creating of reserve funds and whatnots..After accounting for all of this things you could be left with say probably $100 or so... But even that $100 still dosen't automatically mean it is the money you could afford to lose..One could very well have personal reasons why they wouldn't be comfortable losing/or letting go that entire amount...And at the end of the day, they may only decide that they are comfortable enough to letting go $60 regardless of the outcome of Bitcoin, then that $60 could then be what they can afford to lose...

[Muba20]

Look bro, it all falls back to context and the financial situation of the person in question; they have the autonomy to decide when it is right for them to go all in with their discretionary income and when to hold back a bit, there’s no universal rule set in place for something like that.

Ok what If the person already has a significant buffer on the side before deciding to allocate a huge portion of their discretionary income into bitcoin? Huh!, would you still say it was a bad idea ?, i’m guessing No.

Nobody gives a shit about whether a guy chooses to use all his discretionary money to invest or use part of it, as long as he has some liquid buffer to rely on, i don’t see the issue here🤷‍♂️

You're making sense cause both the liquid buffer (emergency fund) and discretionary funds and left over funds after settling essentials they're not same and if someone decides to go all in with the discretionary fund, as far as the emergency fund is not tampered with then it's the person's choice to do so, maybe if opportunity to buy very lower arises.

 People confuse the discretionary and emergency fund for same thing or that it's gotten from the emergency fund, they both from from same source which is the leftover of what's remaining are sorting important expenses. Moreover they serve their different purposes are shouldn't be confused for each other.

If the emergency fund is intact, it may be a personal decision to put a large portion of discretionary income into Bitcoin. But that is not a general rule that a price drop can actually do that. Discretionary income does not mean that it is just buying Bitcoin. Discretionary income and "whatever you can afford to lose" are not the same thing. If an investor does not understand this difference, it will be easy for him to make the wrong decision. The money that is left after paying all expenses at the end of the month is just a basket. But the key is to decide separately how much of that basket you will keep into Bitcoin, how much into an emergency fund and how much to keep for personal expenses.

[Lembo69]

Man! You only know about the history of Bitcoin and how it has survived for the past decade, but you don’t know how what it future holds. So, how can you say that making a profit is guaranteed when you don’t know what the market will look like tomorrow? People believe in Bitcoin that its future will be better than today, but nobody can tell what the future holds. Believing in Bitcoin is part of the risk, so don’t encourage anybody to believe that profit from is guaranteed.

Don’t forget that the value of Bitcoin can go up and down. If everyone can say that making profit from bitcoin is guaranteed, I don’t think anyone would ever say they should invest what they can afford to lose. But there’s also a chance of losing money.

It is true that one can never guarantee an investor will profit from Bitcoin in the future. Bitcoin operates within specific cycles that are inherently unpredictable; no one can say for certain whether its price will rise or fall. However, a long-term investor might find favorable market conditions and potentially earn a profit—though there is no absolute guarantee of a return. Investors are consistently advised to adopt a long-term approach so they can better understand the market and grow their initial investment. For this reason, they are also urged to invest only the amount they are willing to lose, ensuring they do not invest solely in the hope of profit. There is no guarantee that Bitcoin will yield a profit.

That said, if luck and market conditions align and the price of Bitcoin rises during your investment period, you could indeed make a profit.

[nara1892]

It is acceptable for a newbie to start investing with small amounts of his discretionary income until he’s confident enough or knows enough to invest big amounts so to avoid panicking and selling when he’s not supposed to. That’s why the phrase “invest with what you can afford to lose” is very relevant.

These are good points.  Even though bitcoin newbies can do whatever they like in terms of amounts, it tends to be better to start out  with an amount that is relatively smaller within their budget and then to get accustomed to the amount prior to making any adjustments to increase the amount, which hopefully will lead them from within their own judgement into considering how aggressive that they could invest into bitcoin without overdoing it.

As an adaptation stage I also agree that beginners are better off starting their accumulation with a small amount, however Bitcoin has a risk side and this approach can help beginners to avoid big risks, another reason is that beginners are psychologically awake when facing market volatility, simply with a small allocation then it will not cause too much significant emotional pressure on beginners, the last most important thing is as you say is to accumulate without exceeding the limits of your ability in terms of budget, after all I think the success lies not in how much you allocate but how strong you are in maintaining consistency.

[Homemade-IQ]

As an adaptation stage I also agree that beginners are better off starting their accumulation with a small amount, however Bitcoin has a risk side and this approach can help beginners to avoid big risks, another reason is that beginners are psychologically awake when facing market volatility, simply with a small allocation then it will not cause too much significant emotional pressure on beginners,

A beginner or an experience investor just need to invest with a fraction of their discretionary income, so that their wouldn't be much panicking or sell in fear, since they are investing with what they can afford to lose, because even an experience investor will sell in panic if he invest what he cannot afford to lose, because he would be emotionally tied to his investment.

A beginner may still be ignorant of many things, but what I know is that they will not panic or their panicking will be less if they invest what they can afford to lose, because they knows that they wouldn't be that hurt financially if their investment did not later go as planned.


 

[ejikeme24]

We can arguably say there is guarantee of making profit when bitcoin is held over a long period of time. going by it’s behaviour and history, there has never been anyone that has come out to say that they held bitcoin for long time that didn’t get a reasonable return of investment, if it wasn’t guaranteed we won’t even be wasting our time advocating for long term storage, believe in bitcoin, believe in its long term holding rewards.

You're getting it all wrong @Livingleged! Remember what works for other people may not work for you so don't capitalize on the fact that since the early investors made profit in the long term that if we held it for long term that we will as well make profit, Bitcoin is a volatile asset for crying out loud. for that no matter how long you intend to HODL your Bitcoin yet there's no guarantee that you will make profit, What we are doing is just to follow the normal procedure and since there has been an increase in its value over the years if we hold Bitcoin for Long term there's a  little possiblity of making profit from our Bitcoin investment.

[#CapsLOck]

It is acceptable for a newbie to start investing with small amounts of his discretionary income until he’s confident enough or knows enough to invest big amounts so to avoid panicking and selling when he’s not supposed to. That’s why the phrase “invest with what you can afford to lose” is very relevant.

These are good points.  Even though bitcoin newbies can do whatever they like in terms of amounts, it tends to be better to start out  with an amount that is relatively smaller within their budget and then to get accustomed to the amount prior to making any adjustments to increase the amount, which hopefully will lead them from within their own judgement into considering how aggressive that they could invest into bitcoin without overdoing it.

As an adaptation stage I also agree that beginners are better off starting their accumulation with a small amount, however Bitcoin has a risk side and this approach can help beginners to avoid big risks, another reason is that beginners are psychologically awake when facing market volatility, simply with a small allocation then it will not cause too much significant emotional pressure on beginners, the last most important thing is as you say is to accumulate without exceeding the limits of your ability in terms of budget, after all I think the success lies not in how much you allocate but how strong you are in maintaining consistency.

The one thing that newbies tend to forget is to leave a bit of extra cash not involved in Bitcoin investment. As an example. Suppose some person purchases btc using cash that they might need next month. When the price falls and an unforeseen event arises they might not be able to sell it at a loss. It helps to start small. But if you have a separate emergency fund. It can help you be more calm when volatility hits. While consistency is important. It shouldn't be sacrificed for financial stability.

[Barikui1]

, What we are doing is just to follow the normal procedure and since there has been an increase in its value over the years if we hold Bitcoin for Long term there's a  little possiblity of making profit from our Bitcoin investment.

What are you even saying here bro, because it seems like you don't know that Bitcoin is nowhere near it peak price.

I may agree with you that profit is not a guarantee if you invest in it, but because of it history and the huge potential it still have ahead, the chances of our investment being a success in the future is very high, that's why investors are buying and accumulating it consistently just to position themselves in a better position when Bitcoin has risen to a million dollars or more, so I don't know where you get this your idea that their is a little possibility of making out something from our Bitcoin investment later in the future.

[Dannyella]

A method can never guarantee success but rather what will guarantee success in anything we do is how we approach things and the ability of those things to do great in the future. Just like in Bitcoin investment our success is dependent on how we approach Bitcoin with our strategy and the ability of Bitcoin potential to speedily increase in the future. If someone is using the DCA method and then due to a little change in price the person panic, it means they are not long term holder but a trader.

I don’t agree with your comment,to think that having a particular strategy automatically determines success in bitcoin is not true.

Using DCA method would not guarantee profit and panick or selling due to a change in price does not equally make one a trader,being a trader is having a trading approach not only selling when you’re uncomfortable with a loss.

[UpTober]

If an investor's objective is to hold their investment for a long time and is ready to continue investing by taking on all the challenges of the market, then what kind of research do you mean? You might answer that research means when to buy and when to sell, but if I invest for a long time from my place, I will not think about selling in advance, but I will only focus on how to increase my portfolio. For example, suppose I am starting to invest and in the beginning I am investing little by little and moving forward, but gradually I increased my investment amount with practical ideas about investment (now increasing investment does not mean that I am taking extra pressure, rather I will always invest from discretionary income and someone else will advise me to invest in this way). Now if I continue investing continuously with discretionary income, then what kind of research do I actually need about investment.

The essence of doing your own research is to be more informed in what ever you wanted to do, but it is not the yardstick for those that want to invest in Bitcoin, because if you want to invest in Bitcoin, all you just need is to figure out your discretionary income, which is the funds that is left after all your basic needs have been met. So once you can sort that out, starting your accumulation right away is the best way forward.
The rest of other knowledge like what you need to do to be able to develop a strong holding hands, like putting down emergency and reserve funds to protect your bitcoin investment can be attained when you are already in the act of accumulating, not by slowing yourself down by seeking more knowledge without starting your accumulation.

If we can meet our necessary needs and ensure discretionary income, then I think we will not have to wait to become more expert to invest, but rather investors will be able to start investing. Investors should start investing with an amount that will not cause any pressure on the investors, so that they can comfortably maintain the continuity of investment.

However, if the investor, along with investing, thinks about where he is investing and how he will hold on to it in bad times, then these things will help him be patient and make the right decisions later.

At the same time, I want to mention another important thing about investment, which is emergency fund. Emergency fund is very important for investment because while investing, it must be ensured that we do not have to sell our investment suddenly, because if we have to sell our investment suddenly, then the real purpose of the investment will not be fulfilled. In that case, if investors keep an emergency fund ready, then they can use that emergency fund in any danger and keep their investment safe.

So I think it's not a matter of first recharging, getting a complete understanding of everything, and then getting involved in investing, but rather starting to invest responsibly is an important step for investors.

[GIF-JOBS]

These are good points.  Even though bitcoin newbies can do whatever they like in terms of amounts, it tends to be better to start out  with an amount that is relatively smaller within their budget and then to get accustomed to the amount prior to making any adjustments to increase the amount, which hopefully will lead them from within their own judgement into considering how aggressive that they could invest into bitcoin without overdoing it.

You are very correct.and I totally agree with your points for bitcoin newbies I feel starting with a smaller amount that’s within their budget makes sense. Once they’re use to the amount and understand how bitcoin price moves, they can now decide on their own if they’re to increase it or not.  This approach can actually help them to know their own risk level rather than being in a rush to invest aggressively and later they will start regretting it. It’s their  financial capability that  will determine how much they can comfortably put into bitcoin.

Yes, especially for those who are completely new, they should never start with a large amount, because it is difficult to control emotions in the first place, and if you have to face such high volatility at the beginning of the investment, then it will be difficult to tolerate this volatility if you start with a large amount at the beginning. And so here it is better to start with a small amount before establishing a stable mindset, then with real experience it is possible to understand Bitcoin more deeply, and this will then create a different confidence and the power to hold it stably in you to tolerate and ignore volatility, and in this way it will be better to start small and increase the investment as you gain experience. There is no rush, the more stable the one here, the better the chances of future success, and so it is better to start slowly and increase the investment by gaining experience.

[Odohu]

These are good points.  Even though bitcoin newbies can do whatever they like in terms of amounts, it tends to be better to start out  with an amount that is relatively smaller within their budget and then to get accustomed to the amount prior to making any adjustments to increase the amount, which hopefully will lead them from within their own judgement into considering how aggressive that they could invest into bitcoin without overdoing it.

As an adaptation stage I also agree that beginners are better off starting their accumulation with a small amount, however Bitcoin has a risk side and this approach can help beginners to avoid big risks, another reason is that beginners are psychologically awake when facing market volatility, simply with a small allocation then it will not cause too much significant emotional pressure on beginners, the last most important thing is as you say is to accumulate without exceeding the limits of your ability in terms of budget, after all I think the success lies not in how much you allocate but how strong you are in maintaining consistency.

When we say small amount, we should be able to know that what may be small amount of money for someone may be the dream target to another person. The only way to make this clear is to emphasise the need to invest with only discretionary income which is the amount the investor can play around with without feeling despair if anything goes wrong. If a new investor understand this concept of using discretionary income, most of the problems like anxiety, FOMO, etc will naturally vanish.

[Futurexxx]

Yes, especially for those who are completely new, they should never start with a large amount, because it is difficult to control emotions in the first place, and if you have to face such high volatility at the beginning of the investment, then it will be difficult to tolerate this volatility if you start with a large amount at the beginning.

I don't think that this is about starting with a large amount of money or not, but it's more about starting with a fraction of your discretionary income. Why I said so is because everyone has a different financial reality, so my own discretionary income may be too small to you, while it might be too big for another person, so investing base on your own financial reality is the best. When a new investors or even an veteran investor invest more than he can afford to do away with, he will always be in a state of panic, when the market is not going as expected, so to avoid being in such a situation, we should do well to invest only from our discretionary income, because with that line of action, we can easily manage our emotions if our investment is not playing out as expected.

. There is no rush, the more stable the one here, the better the chances of future success,

Another thing we need to pay heed to is consistency in our accumulation, because if we can be consistent with it, in no distance time, we can build a huge stash of Bitcoin and position ourselves to be a success in the future, if Bitcoin can rise to a million dollars or more in the future.