JJG’s Outline of Bitcoin Investment Ideas

[Positive_mind]

I don't understand this part. There's nothing wrong in buying bitcoin aggressively as long as you have the financial capacity to do that. A person may start his bitcoin accumulation initially and later get an additional source of income. When he gets additional source of income, he may decide to increase his investment amount to fasten his steps to his accumulation goal. Becoming aggressive is a personal choice and it borders on your finances.

Another scenario is that a person may be maintaining a given DCA strategy and eventually gets additional money. What does he do, he will decide the amount to buy bitcoin aggressively while maintaining his long-standing DCA. So there's no point saying that ...you cannot buy bitcoin aggressively. Buying bitcoin needs patience but that does not mean that being patient is against buying bitcoin aggressively as long as you have extra money to invest with out interfering in your basic responsibilities.

What you just said is right, but where some investors get confused is that they mix up aggressive buying with reckless buying. Aggressive buying isn't a problem here when an investor is capable of doing that; that's if there's a solid foundation put in place for such. After the investor must have settled every bill and no loans they owe, in this case your source of income is at peace. Whereas reckless buying is when you aren't using a discretionary income or using money that is above your risk threshold (i.e., money that you cannot afford to lose).

Therefore, before you buy Bitcoin aggressively, one key thing to ask is, let's say the price of Bitcoin drops 50% tomorrow from the point you bought, and eventually you lose your job too, would you panic sell, or would you be fine? So now the answer is left for every individual investor to answer.


Generally and in conclusion, buying aggressively to me is a choice.

[sotelorene]

Whether a person trade prudently or otherwise there's no guarantee that the person would succeed so don't even waste your time in trying to get people to join trading or making trading look like something that is simple, and if you ask  me I would say the time of trading has passed because I barely see people talk about trading like before, perhaps they must have figured out that Long term investment is the best so they have all switched to long term investment and as you can see that's where we all in interested in. Why don't you give long term investment a trial I guess you would love it.

You are absolutely correct, being wise in trading won't make someone not to make loss of course they will and loss is highly inevitable in trading regardless of the amount of knowledge and psychology someone has. Trading is not simple because it requires a lot of self skills and that of market skill that is why it is good to venture into investment since those skills are not required in investment. Yet you still need to put things in order before you can succeed in investment. However, the fact you don't hear about trading doesn't mean people are not trading.

[Primark]

Failure to set up an emergency funds as an investor to backup our investment holdings is like subscribing to failure since emergency situations are inevitable and can barely be avoided. However, this fact can't be negotiable not for anything as long as bitcoin investment is concern. Furthermore, you aren't setting it in place for fancy or for formality purposes but to have your asset secured. Because when real live problem comes, like unplanned sickness, unexpected movement that you must make and other unplanned situations that may arise that you will need to attend to then you will understand the need for it that it wasn't just mentioned for child's play.

To invest in Bitcoin, you definitely need to build an emergency fund, apart from the emergency fund, you need to follow other strategies that will help you keep your Bitcoin investment for a long time. For example, you need to be patient, you cannot buy Bitcoin aggressively. You need to follow more strategies that if you follow the rules, you will be able to move yourself forward towards the future, circumstances will never fix you, but you have to be in the circumstances of time.
So in Bitcoin investment, it will be the best to keep yourself calm and move towards the future by buying Bitcoin.

There is no need to make it a condition that you have to build an emergency fund before you start buying Bitcoin. Because building an emergency fund also takes time. It can usually take more than 1 year to build a complete emergency fund. I doubt whether a person will be able to start at all if he waits so long before starting. Therefore, I would suggest that if a person gets $200 per month as discretionary income after meeting all his necessary expenses, he can start buying Bitcoin with a part of that money and at the same time he can spend another part on building an emergency fund and on personal expenses. At the same time, he can build an emergency fund without being deprived of the opportunity to start. Of course, he must have a way to meet his necessary expenses for the next month. But just because he has not achieved the entire goal of emergency savings, he should not refrain from buying Bitcoin.

[Abbatty]

Whether a person trade prudently or otherwise there's no guarantee that the person would succeed so don't even waste your time in trying to get people to join trading or making trading look like something that is simple, and if you ask  me I would say the time of trading has passed because I barely see people talk about trading like before, perhaps they must have figured out that Long term investment is the best so they have all switched to long term investment and as you can see that's where we all in interested in. Why don't you give long term investment a trial I guess you would love it.

You are absolutely correct, being wise in trading won't make someone not to make loss of course they will and loss is highly inevitable in trading regardless of the amount of knowledge and psychology someone has. Trading is not simple because it requires a lot of self skills and that of market skill that is why it is good to venture into investment since those skills are not required in investment. Yet you still need to put things in order before you can succeed in investment. However, the fact you don't hear about trading doesn't mean people are not trading.

I still don’t understand how people try to beat bitcoin with it volatility. There is no mastering in trading or in the volubility of bitcoin, there is no book you read or research you make that will make you beat it. So this very reason is why it is said to best invest in bitcoin than to trade with it. With investing in Bitcoin and using the DCA it put you in this safe position, because you are investing with what you can afford to lose.

With investing you don’t really need to learn anything but just figure out how to get your discretionary income and  start investing. The only thing is try and use DCA for your accumulation and I don’t think you will find your investing difficult.

[MusaPk]

Sure your $100 per week example may well be aggressive (and probably even overaggressive?) if he is investing all of his discretionary income into bitcoin, and surely I advocate to consider all three categories of allocation, even if there may be a lot of weighting towards bitcoin investment, and it would be way more healthy to allocate 80/10/10 to investing, savings and discretionary consumption rather than 100/0/0. It makes little sense to me to fail to allocate anything towards savings and discretionary consumption, and if a person is investing in bitcoin without allocating anything into savings and/or discretionary consumption, then my off the cuff presumption would be that he is overinvesting.

If you are referring to Hypo-15 (thats where majority of us fall) then such person has to invest in Bitcoin and build his emergency funds alongside. In that scenario a person has to break his discretionary income into investing as well as into savings.  

Between my point was that if someone is left with 100$ after allocating funds for monthly expenditures, emergency funds then its best for him to invest major part of that in Bitcoin. As far as discretionary consumption is concerned, I think we can make a compromise on that or we have the liberty to at least reduce them because discretionary consumption is our 'wants' not 'needs'. My smartphone which is years old is still working find and I don't think that buying expensive latest iPhone is good idea rather its better to invest that money in Bitcoin because that will increase its worth over time but iPhone always goes down in price with time.

No one can force any other to invest more or less in Bitcoin, it's someone personal choice. Bitcoin investment done today will give us good return after years and this is why its important to maintain balance between what we need in hand right now vs what we invest for years to come.    

[Mehmet69]

I don't understand this part. There's nothing wrong in buying bitcoin aggressively as long as you have the financial capacity to do that. A person may start his bitcoin accumulation initially and later get an additional source of income. When he gets additional source of income, he may decide to increase his investment amount to fasten his steps to his accumulation goal. Becoming aggressive is a personal choice and it borders on your finances.

Another scenario is that a person may be maintaining a given DCA strategy and eventually gets additional money. What does he do, he will decide the amount to buy bitcoin aggressively while maintaining his long-standing DCA. So there's no point saying that ...you cannot buy bitcoin aggressively. Buying bitcoin needs patience but that does not mean that being patient is against buying bitcoin aggressively as long as you have extra money to invest with out interfering in your basic responsibilities.

What you just said is right, but where some investors get confused is that they mix up aggressive buying with reckless buying. Aggressive buying isn't a problem here when an investor is capable of doing that; that's if there's a solid foundation put in place for such. After the investor must have settled every bill and no loans they owe, in this case your source of income is at peace. Whereas reckless buying is when you aren't using a discretionary income or using money that is above your risk threshold (i.e., money that you cannot afford to lose).

Therefore, before you buy Bitcoin aggressively, one key thing to ask is, let's say the price of Bitcoin drops 50% tomorrow from the point you bought, and eventually you lose your job too, would you panic sell, or would you be fine? So now the answer is left for every individual investor to answer.
Generally and in conclusion, buying aggressively to me is a choice.

Yes, you are right, buying aggressively is basically a personal decision. Investing in Bitcoin does not mean that you have to continue investing even if you face financial problems in real life. Bitcoin is an opportunity for us to become financially independent by investing in the right place. It never gives us permission to make reckless investments. A person invests aggressively only when he understands that this investment will bring him good profits in the future. According to the situation you mentioned, if the price of Bitcoin falls by 50%, most investors will continue to buy aggressively. Because they know that Bitcoin will return to its previous place again. But if I do not have a job at that moment, I will not be able to invest aggressively even if I want to. Many people here will say that if the price of Bitcoin falls so much, then this is a big opportunity for us and we will have to invest aggressively even if we take loans. But I will say that this is a completely personal decision. If someone can make a decent living without a job and doesn't want to miss out on the low price of Bitcoin, they can definitely invest. Not everyone will be able to make the same decision in such a situation. So, aggressive investing is a completely personal decision.

[Rabata]

I get your point about how emergency funds is in every investment, but don’t make it sound like a must, there are people who go into investment without having emergency funds.

Are you proclaiming that it is not a must for Bitcoin investors to have emergency funds? you can say it is not a must to have it before you start your Bitcoin accumulation, but once you start your Bitcoin accumulation journey, it is expected of you to build your emergency fund along side with your Bitcoin portfolio, and it is a must if you really want to safeguard your Bitcoin investment, not doing this is like shooting yourself on the foot cause emergencies occurrences takes place unexpectedly and as investors we are to prepare for it, I'm sure  you now know that emergency funds is a must and very necessary.

You are absolutely correct, the fact that we don't need emergency funds before kick starting our Bitcoin investment doesn't mean we don't need it in our investment  so anyone who is thinking we don't need emergency funds at all definitely doesn't know what he or she is saying and it probably means they lack some knowledge about the whole idea of Bitcoin investment. Emergency funds is more like a house foundation, if the foundation is not good enough the building will definitely collapse in a little period of time.

In the long term, having an emergency fund can provide some protection from selling when needed. It can be a rash decision to assume that an investor's plan will fail if they don't have an emergency fund before investing. The reality is quite different. Let's assume that a person has $100 in discretionary income per week after meeting their essential expenses. Let's assume that they don't have an emergency fund. If they want, they can start investing in Bitcoin with a small portion of their discretionary income and put the rest into an emergency fund and personal expenses. This allows a new person who doesn't have an emergency fund to invest and focus on protection at the same time. But when you make it mandatory to invest in an emergency fund at the beginning, you are actually giving them additional conditions that may prevent them from starting to invest.

[ChocolateBitcoinK]

so i can not advice any investors to engage on trading and as well as holding,

If you cannot advice any investor to hold, then what would you advise them to do?
Holding for the long-term is the best choice for an investor very serious with bitcoin, you have the liberty of accumulating as much bitcoin as possible while you keep holding as long as you still have discretionary income present and you've a chance to preserve the value of your funds for long and even increasing it as the price of bitcoin goes higher.

If an investor cannot hold on then he should first consider his investment objectives and financial situation. Investing does not just mean buying. He also needs to be mentally prepared to endure market fluctuations and uncertainty and hold on to his investment for the long term.

If someone buys and sells with the intention of making a profit then a long-term investment strategy may not be suitable for him. However trading should not be considered a way to make easy money. This requires market analysis, risk management and emotional control. Engaging in leverage or futures trading without experience is very risky.

There is no obligation to hold on to Bitcoin. Everyone has a different risk-taking ability. If someone cannot hold on for the long term, it is not right to force him to go that route. An investment strategy should be chosen that he can follow while maintaining his financial capacity and mental comfort.

[Princess Leah]

Yes, you are right, buying aggressively is basically a personal decision. Investing in Bitcoin does not mean that you have to continue investing even if you face financial problems in real life. Bitcoin is an opportunity for us to become financially independent by investing in the right place. It never gives us permission to make reckless investments. A person invests aggressively only when he understands that this investment will bring him good profits in the future. According to the situation you mentioned, if the price of Bitcoin falls by 50%, most investors will continue to buy aggressively. Because they know that Bitcoin will return to its previous place again. But if I do not have a job at that moment, I will not be able to invest aggressively even if I want to. Many people here will say that if the price of Bitcoin falls so much, then this is a big opportunity for us and we will have to invest aggressively even if we take loans. But I will say that this is a completely personal decision. If someone can make a decent living without a job and doesn't want to miss out on the low price of Bitcoin, they can definitely invest. Not everyone will be able to make the same decision in such a situation. So, aggressive investing is a completely personal decision.

You're right, there comes a time when one might face financial challenges and would have to reduce the percentage of what they invest in Bitcoin until they're able to bounce back financially and adjuct to the earlier amount or something higher, adjusting based on financial challenges is not a bad idea and doesn't mean the investment won't be successful.

 Everyone mustn't be aggressive with their investment it's a decision made based on ones financial capacity, Mr A might be financial capable to do so whereas Mr B isn't, it doesn’t make Mr B less of an investor cause everyone has to invest according to their financial capacity and shouldn't be pressured on doing otherwise.

[DubemIfedigbo001]

Therefore, I would suggest that if a person gets $200 per month as discretionary income after meeting all his necessary expenses, he can start buying Bitcoin with a part of that money and at the same time he can spend another part on building an emergency fund and on personal expenses.

Personal expenses should be considered before identifying the remainder as discretionary income. It is a bad investment practice to buy bitcoin when you've not finished attending to your expenses to know the extent of discretionary income you've remaining. If the need for those expenses you previously neglected arises, then you may have no other option than to tap into your holdings or use part of your emergency fund to solve such expenses and both practices are wrong because your portfolio shouldn't be tampered and your emergency fund is reserved for real emergencies and of which your personal expenses is not an emergency.