Agreed, Investing in Bitcoin does not require extensive experience or expertise, a good way to start is by trying to invest small amounts while increasing your knowledge and experience. Using discretionary funds is also a good idea because they do not feel pressured to invest too much, this also has to do with the frequency of investment that is in accordance with the cash flow that is ready to be invested. When someone decides to start investing in small amounts and consistently accumulates the amount periodically, this method can indirectly build good investment habits and better understand how Bitcoin works.
Starting small is a good idea, in my opinion. Investing in BTC requires waiting until you become an expert in terms of knowledge and so on. I think we'll be left behind by others, for example, if others have already bought BTC while we haven't. So, over time, we'll gradually understand more about BTC and how it feels to have even a small amount. In my experience, investing in BTC is easy because you just buy it on the market using money you can afford to lose and immediately put it in your wallet. What causes people to fail in investing in BTC is usually because they don't realize how risky it is and buy it with money they can't afford to lose. But over time, you'll understand, because sometimes we learn from experience. And yes, if you start investing with a small amount of money, it will certainly make someone less panicked and will certainly gain valuable experience. For example, if you make a mistake, you will certainly not make the same mistake again in the future.
Another BIG mistake is selling too much too soon, especially in the context of being "in profits," so many times guys have difficulties to continue to hold and probably continuing to buy bitcoin when their holdings are in profits.. .when they should ongoingly continue to stack for probably more than a whole cycle or maybe even more than 2 cycles, yet they end up devolving into a kind of trading mentality even if their intention might have had been to invest.. and so yeah.. investing too much in the beginning (as you mentioned) and also not really pacing themselves for the long haul.. which is probably way closer to 10 years or more rather than anywhere in the range of 4 years or even less than 10 years..
But guys are going to do what they are going to do and even end up putting themselves into a wrong kinds of mindset since at some point they stop with their ongoing and continuous accumulation of dee cornz.
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I love how you connect consistency (weekly buys) with continuous learning. In my experience and observation with having to stick with Bitcoin for the long term, those who started their investment with full confidence are mostly the ones who tend to last longer in the long run, because no matter what turn the market decides to take, they’ll always keep showing up.
Frequently guys are going to have to try to pace themselves too, even if they might have started out buying a lot, they might have to continue to buy, but to reduce their buy amounts so that they are not getting too emotionally attached in regards to whether their bitcoin is short-term in profits or not.
At first what mostly brings people to bitcoin is curiosity, but the moment real money gets involved, even if it’s just small amount, then that curiosity automatically turns responsibility. People tend to read more, revisit certain assumptions , question certain narratives, and then gradually there’s a shift in their mindset from if it is actually risky to what would really happen if they happen to stop.
Of course no one wants to lose money.. so they will start to get nervous and even suffer from loss aversion,... yet if they can convince themselves that they are investing 10 years or more, then they might get themselves to become less emotionally attached to how their holdings happens to be performing during shorter timelines.
There surely are difficulties for guys to commit to 10 years or longer, even when they might say they are "in it for the long term," they still have some difficulties with the idea of locking up value for so many years (10 years or longer). .. yet it probably would be for their own good to get into some kind of a mindset that the investment is long term, and if they cannot emotionally deal with the fact that they are locking up their money for that long, then maybe they should reduce their weekly investment amount so that they are investing with money that they are not so emotionally attached to.
Yes, I understand people need to have fun too.. so they have to keep some money for themselves to have some fun, from time to time, even if they might be also attempting to somewhat aggressively invest into bitcoin... They can maybe save up to buy something for themselves (such as a phone or a motorcycle or a vacation or some other thing that they would like to have) even while they continue to ongoingly and persistently invest in bitcoin.
When I started my accumulation, I started with an amount that was far less than $100 a week. Although at first, I didn’t have financial independence or replacing my income as the core goal of my accumulation. But overtime, income grew and increased slightly, but more importantly, my spending awareness improved. There were no dramatic changes, but I discovered that unnecessary assumptions became pretty obvious. What really surprised me in the process wasn’t actually how much Bitcoin I had accumulated overtime, No. it was rather how the discipline and consistency itself managed to reshape my financial behavior. At that point, I didn’t only see Bitcoin as just an asset but more of a measuring stick fo intr opportunity cost.
What seems to happen is that guys who used to believe that they did not have any money for investing, they start to rethink their income and their spending and all of a sudden they become ready, willing and able to dedicate more money towards investing into bitcoin than they thought was even possible.. so in some sense the realm of possibilities change merely from ongoingly and weekly reinforcing the conduct of ongoingly buying bitcoin (such as weekly).
I also agree with your points about discretionary income. Technically, a lot of folks have it but it’s always been invisible because they had already pre spent it in their minds. The moment that folks learn to reframe their money into the three choices that you aforementioned, which are consume, save and invest, then it becomes more difficult to justify leaking value without an actual intention. That mindset shift becomes very significant, regardless of the investment amount, whether it’s small or not. Small investments has the potential to grow slowly, but clarity compounds.
There is value in recognizing that "I can do whatever I want with this money that I have that is in the category of discretionary money" yet at the same time recognizing that whatever is chosen is still going to fit within one or more of the three categories, so if the categories are considered in advance.. a guy can enforce rules on himself and he can also liberate himself from those rules whenever he likes.. yet at the same time realizing whether he imposes structure on himself or not, he is choosing to do so and there are consequences to his choices whether to have structure or not.
Yeah, sure, sometimes there might be needs that every once in a while a guy is going to purposefully take $100 or $200 or even $1k and blow it on something that he did not plan.. yet at the same time, he would be carrying out his spontaneity within a kind of structure that he imposed upon himself, so he becomes liberated by his own imposition of a structure, since he knows that he can make adjustments to his structure at any time, if he chooses to do so.
Oh, and by the way, less than $100 per week into bitcoin could later end up growing into $100 or more per week and also have a bit of a good feeling that the increasing of the amount ended up being a kinds of self-created accomplishment.
I also have reasons to believe that your emphasis on adjusting accumulation based on income and capacity rather than price is often underrated by many. Investors are more interested in buying more when the price drops, but the truth remains that their buying power is mostly determined by their earnings and not the charts or the position of the market. Folks tend to be more calmer during volatility when they anchor their strategy to income because their strategy and plan is rooted in something that they have control over.
Another thing is that in the long run (such as over 10 years or more), it is not going to make too many differences if some of the weekly $100 purchases of BTC were bought at $80k, $90k or $110k, and if a person creates strong practices around his own income and expenses, then he will likely end up buying more bitcoin in the long run based on his own abilities to focus on his staying organized within his managing of his cashflows and his not putting himself into positions of having to scramble and even perhaps sometimes making mistakes because he was busy moving money around rather than staying focused on other things that are also likely important that are going on in his life.
Lastly, it’s very true that not everyone can reach the same level of conviction but that’s very okay. Price appreciation doesn’t just make all the doubts disappear, what really makes fear disappear and builds true conviction is understanding and lived experience. While others continue to double down because bitcoin agrees and aligns with their values, time horizon and expectations, there are others who step away because it doesn’t align with the patience and priorities.
Bitcoin might not really click in the beginning, and so maybe based on the lack of clicking, the guy purposefully chooses to invest $30 per week, even though he knows that he is completely capable of investing $100 per week, but then perhaps after he continues to buy and maybe he spends 1-2 hours each week reading information related to bitcoin, and then perhaps at some point, he realizes that he needs to look into some part of bitcoin that confuses himself, and then perhaps after he looks further into bitcoin, it might later start to click.
Other guys, it might not click, and they might step away from bitcoin for several years and then come back to bitcoin at a later point, because they realize that their earlier thoughts were not correct and they had to revisit some aspects of bitcoin in order to start to feel that it was starting to click with them and their ways of looking at money and or how bitcoin related to various shitcoins. Our own experiences and background training might affect how we see aspects of the world, and the rate at which bitcoin clicks from one person to another is likely to differ.
We don't need to be experienced or savy to invest into bitcoin, and hopefully we get started with small amounts and build up our experiences, and we have enough common sense to not invest too much as we are getting used to buying bitcoin from our discretionary funds, whether we do it on a weekly basis or if we choose some other frequency (based on our cashflow circumstances).
You’re spot on and you’re very correct with your statement, We don’t need to have any experience before we can invest into bitcoin, Literally when I started investing in bitcoin I didn’t require any experience to start investing in bitcoin, little details and information, like basic knowledge was enough for me to start buying bitcoin, but what matters the most is just trying to stay consistent in buying bitcoin when we have started, and what we could actually sustain the investment then we can consider on weekly basis or monthly basis depending on when we have a discretionary income available.
the only people that needs experience is traders because they need to know when to buy and when to sell and having experience will go a long way to succeed as a trader but long term investors has no business with experience. I always tell people the only thing a long term investor who is just coming into the system newly should only know is how to accumulate and how to secure there wallet that's all, long team investors has the most easiest job, you don't need to stress your brain thinking about the market your duty is just to Buy Buy Buy and Buy, just continuing the process for a very Long term.
You seem to be making a mockery out of the idea of experience, and the fact of the matter, each of us comes to bitcoin from whatever experience level and/or knowledge level that we have, and we work our investment from there.. so long as we have some discretionary funds and common sense, we can work with what we have in order to get started investing in bitcoin and build our bitcoin investment up as we go... and as we become more comfortable in the strength of our cashflows, then we likely can figure out to invest higher levels of our discretionary funds into bitcoin as we are also learning about aspects of ourselves and aspects of bitcoin, too within where we are at in terms of understanding
our individual factors.
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Experience will be gained when you actually start with real action. Over time, you'll learn invaluable lessons from every step you take. This can help build a real understanding of market dynamics, which can't be fully learned from theory alone. Often, those who fail in investing aren't equipped with sufficient knowledge. This leads to significant fear of a sharp market decline, leading them to engage in activities they shouldn't. Of course, before beginning this step, you should be well-informed about basic investment knowledge and the risks you'll face, as the
crypto market is constantly fluctuating.
Hopefully we are not fucking around with shitcoins and we are able to stay focused on bitcoin.
Another thing is that we gain experience and knowledge by action and getting started, so as you seemed to have had been suggesting in part of your post, we do not need to build up our theories prior to getting started and acting, since our actions will make more sense within a context of doing them rather than theorizing about them.
Learn as we go, even if we are merely starting out investing $10 into bitcoin and then figuring out if we are going to invest another $10 the next week, and then pretty soon we are investing $10 per week into bitcoin while we continue to study it... and focus on bitcoin first, while not getting distracted by either trading or shitcoins.
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I think I agree with you. No one knows it all. As soon as you've learnt the essentials, start. When you start, you will learn more from the mistakes you make while taking actions. Waiting until you know it all, you might wait for ever.
I think people should understand there's no perfection anywhere, and
crypto market is not exempted from that too.In as much as we can't undermine the power in the knowledge we garner before entering into the market, we should as have in mind that will learn more when we start.
We are not talking about crypto here. Fuck crypto.
We are talking about bitcoin. Do you know the word bitcoin? If so, then why are you talking about shitcoins when this is a bitcoin thread?
