There is no need of having a proper Idea about bitcoin since you need just your discretionary income to invest. Where you should need a proper Idea is to manage your income properly and figure out your discretionary income, because without your discretionary income, you can't invest in bitcoin. The time and energy you'll spend to have a proper knowledge about bitcoin should instead be focus on securing an additional source of discretionary income as this will increase your discretionary allocation and help you build a substantial stash over time.
I am a bit confused, are you talking about the pre-investment situation or the initial investment situation? Or are you talking about the beginning to end of the investment?
It is not mandatory for us to know everything about Bitcoin to start investing and we should not spend much time to gain deep knowledge in the beginning.
But after starting investing, you must have deep knowledge, why do you think that we do not need a proper understanding of Bitcoin?
I am a bit confused about your assertion that guys need to have deep knowledge to invest in bitcoin.
Sure, many times we talk about not needing to know anything to get started buying bitcoin as long as there is discretionary funds, then a guy can get started buying bitcoin.
Yet, ultimately, each guy chooses how whimpy or aggressive that he wants to be in regards to how much he invests, and also he chooses how whimpy or aggressive that he wants to be in terms of learning about bitcoin and/or cashflow management.
Many of us would presume that investing into bitcoin should incentivize guys to want to learn about bitcoin and about cashflow management, yet each person has their personality and they make choices about how much to prioritize bitcoin investing as compared with other things going on in their lives. We cannot tell people what they should do, since it is up to them, even if we might realize that bitcoin is amongst the best, (if not the best place?) to put our time, energy and value, other folks might not come to those same conclusions in regards to how to spend their time, energies and value.
After starting investing, you should have a deep understanding of risk management, investment management, financial management and fund management.
Sure. Those are all good areas to learn while investing into bitcoin, even though surely we cannot force others to learn about those topics and/or to pay attention to them.
At the same time, you will gain knowledge and apply that knowledge to manage investments.
You may well be correct that if guys build their wealth with bitcoin and cash (presuming that bitcoin is their first investment), then it may well logically follow that their wealth building will lead them towards having other investments, assets and perhaps other ways of holding cash. The more wealth that we build, then the more it makes sense to have options in regards to how we are holding the wealth and even how we might later move it around and/or draw upon it from time to time.
In this thread, I presume that many guys do not have a lot of other investments when they come to bitcoin, yet we know that there are also guys who might come to bitcoin and already have other investments, so surely if they are building their bitcoin investment and figuring out how much of a priority they are giving to their bitcoin investment as compared to other places that they have value, then their having other investments gives them options, but their figuring out how bitcoin fits into their overall investment portfolio will also incentivize them to learn more about managing their various assets.
Personally, I don't tend to recommend getting other assets for the mere sake of doing it, so frequently it may well be the case that it would be better for guys to focus on building their bitcoin and cash up to a point in which maybe their cash is 3 months or more of their expenses and then their bitcoin is growing perhaps at a greater rate and it might get close to a year or their expenses, or the bitcoin might get to be more than a year of their expenses, and so the larger their bitcoin holdings, then the more it might make sense to hold larger amounts of value in cash or even in other assets that are cash-like but at a lower priority than their bitcoin. It makes more sense to learn about and to apply those choices within the parameters that individuals have to weigh for themselves (like the
9 individual factors that I list).
If you think about managing long-term investments with general knowledge, then there is a possibility of taking wrong steps and your funds will also be at risk. It is necessary to have a proper understanding of Bitcoin, although it is not mandatory before investing or at the beginning, but it is very important to start investing.
I agree with you on this last part. It does seem that guys are better off to get started buying bitcoin and then learning about bitcoin and cashflow management as they are building their bitcoin stash, yet the level of their aggressiveness in regards to their investment is their choice, and surely we can think of historical examples in which guys may well end up profiting much more based on higher levels of aggressiveness, yet aggressiveness level is also a choice that likely ends up having consequences. Earlier in the thread
I list 15 hypotheticals that attempt to show how both time and level of aggressiveness tend to play out (or at least how they had historically played out) in bitcoin.
Investors and traders are not similarly in anyway. They are different people with different views as regarding bitcoin. Risk management applies in any form of investment we are doing, be it bitcoin or any other form of investment, that alone cannot make investors and traders similar. I don’t know how someone who see bitcoin as commodity and someone who see bitcoin as an asset that is worth holding for life, are similar to each other. Investors are looking for ways to increase their portfolio, while the other party are looking for every possible opportunity to sell. Investors are long term holders, traders are short term holders. In reality investors and traders are like parallel lines, their views about bitcoin can never be the same.
we should not be talking about trading because it is very risky to make out something from and the first difference you just gave does not differentiate investors and traders in any way because some trader especially professional traders do have risk management just as investors, as a matter of fact there are some investors that do not have risk management like some traders so it is actually vice versa. However, if i want to differentiate traders from investors what will come to my mind is "Habit" the behavior of trader is very different from that of an investor.
You @SDS11 told @7juju that he should not be talking about comparing trading to investors, and then you went on to compare traders to investors, and you even tried to proclaim that traders have some superior attributes - which is a kind of pumping of the idea of trading.
I was close to deleting your post rather than responding to it, but instead, I decided to respond to it, and let it otherwise stand.
Yeah, this is an investing thread, and there tends to be little to no reason to talk about trading, except how it might relate to investing or the concepts of this thread, which, from my perspective, your post seemed to be lacking in that regard based on your seeming to want to praise investors for their supposed superior risk management skills.... which I consider that kind of an assessment to be somewhat delusional, yet at the same time it is off topic, so I don't really want to invite debate about the topic in this thread. .and yeah, I get a bit resentful to have to respond to topics that I find to be off topic especially when guys also present wrong ideas about trading and/or shitcoining and/or sometimes other topics too.
For sure, guys can work hard, and also figure out in which category (hypothetical) they fit, and it takes time to move from categories 13-15 and into categories 10-12, and we really cannot change our starting points, even though there could be ways that we work on our own systems to try to change our locations while we are in them, so yeah, with time, we might find ourselves in categories that we had not expected to find ourselves based on our recognizing where we are at and recognizing where we would prefer to try to get.
We cannot change our starting points but we can work hard to change our position in the future. If someone is from
Hypo-15 (newbie BTC investor who came into bitcoin without any kind of investment portfolio) and he can only afford to invest 100$ per week into Bitcoin then he can move into
Hypo-12 (1.25-years BTC investor who came into bitcoin without any kind of investment portfolio) provided he stay consistent by spending 100$ per week into Bitcoin for 1.25 year. After 1.25 years, he can have understanding that if he keep on investing 100$ per week into Bitcoin then he need to continue investing for next 10-15 years before he starts to feel that he has a decent number of Bitcoins. He also has realisation that he needs to increase the amount he is spending in Bitcoin to have good number of Bitcoin in his portfolio in future and for that he will look for ways to increase his discretionary income.
More on Hypo's
here.
Your link did not work... so I fixed it.... otherwise I agree with the points that you are making that relate to guys abilities to try to work towards putting themselves into a better category with the passage of time, even if they might have had started without much of anything.
You should have a proper idea about investing in Bitcoin, how you will invest and how to sustain it for a long time, it is enough to follow this strategy. Yes, a new person should not waste his time to know everything about Bitcoin, but he should invest in Bitcoin along with investing.
There is no need of having a proper Idea about bitcoin since you need just your discretionary income to invest. Where you should need a proper Idea is to manage your income properly and figure out your discretionary income, because without your discretionary income, you can't invest in bitcoin. The time and energy you'll spend to have a proper knowledge about bitcoin should instead be focus on securing an additional source of discretionary income as this will increase your discretionary allocation and help you build a substantial stash over time.
Bitcoin investment certainly requires a reasonable income, but even then it is very reasonable for us to add some additional strategies such as building an emergency fund.
You are wrong if you believe that building an emergency fund is optional, especially if you are serious about investing in bitcoin and you recognize that bitcoin has a 4-10 year investment timeline or longer. If you do not have back up funds, there is almost no way that you can have any level of confidence that you would be able to invest in bitcoin for 4-10 years or longer, and instead you would just be gambling, hoping and praying that you do not have any situation in which your income went down and/or your expenses went up to such an extent that you ended up having to dip into your bitcoin at a time that was not completely of your choosing.
We should definitely consider this situation. To be successful in Bitcoin investment, we must be patient, but a new investor can invest in Bitcoin freely.
If he can invest in Bitcoin using his income in a new situation, then this will be the best for him, patience is definitely the most important thing for Bitcoin investment.
Patience isn't going to do you a whole hell of a lot of good if you employ weak cashflow management practices.
Bitcoin investment certainly requires a reasonable income, but even then it is very reasonable for us to add some additional strategies such as building an emergency fund. We should definitely consider this situation. To be successful in Bitcoin investment, we must be patient, but a new investor can invest in Bitcoin freely.
If he can invest in Bitcoin using his income in a new situation, then this will be the best for him, patience is definitely the most important thing for Bitcoin investment.
Reasonable income meaning something big but this is not correct because having a reasonable doesn't determine one can invest in bitcoin. No matter the income one is earning it can still be invested in Bitcoin. You only need the amount you can afford to lose to invest in Bitcoin and not a reasonable amount.
You are correct @Sobz to proclaim that the term "reasonable income" is vague, and it is almost meaningless, since what a guy actually needs is discretionary funds, and yeah, the amount that you can afford to lose is a subsection of discretionary funds.
If you say a reasonable amount is meeded to invest in Bitcoin, this can mislead low earners from investing in bitcoin. So far as one is able to generate discretionary income from their income it is possible to invest Bitcoin. Bitcoin investment is not meant for only those who earn big but also for low earners to use the DCA strategy to accumulate bitcoin.
You are correct to suggest that discretionary funds can be generated by either rich people or poor people, since discretionary funds come from executing an ability to have expenses that are lower than your income, and so then you have left over money that can be invested, saved and/or other wise discretionarily spent.
