Should I depend solely on Bitcoin?

[bitbollo]

You must have a portion of your wealth in FIAT money. You had to move easily for paying live expense, fees, local taxes.
If you can just have this portion ready to be used and for the rest you use btc... this is the perfect setup.
Of course, its much better that people invest money only when they feel safe for storing in that way. Otherways yoy will not like the experience...

[Marvell1]

That applies if you have enough money to invest, but if you're aiming for higher returns, then high-risk investments are the way to go. Some investors still choose to diversify, but they do it within the market itself , for example, they might put 50% of their portfolio in bitcoin (less risky asset), and then spread the rest across different altcoins (high-risk assets).

I don't know what to call a 50% allocation to bitcoin and 50% to altcoins, but I don't think it's diversification. As I understand it, the main goal of diversification is to reduce risk but allocating all capital to crypto doesn't seem to help us reduce risk. Because the whole market is completely dependent on bitcoin, so how can investing in altcoins be called diversification?

Diversification is only true when we invest in unrelated assets/investments like stocks, cryptocurrencies, gold, real estate...

[Bellerophon1990]

That applies if you have enough money to invest, but if you're aiming for higher returns, then high-risk investments are the way to go. Some investors still choose to diversify, but they do it within the market itself , for example, they might put 50% of their portfolio in bitcoin (less risky asset), and then spread the rest across different altcoins (high-risk assets).

I don't know what to call a 50% allocation to bitcoin and 50% to altcoins, but I don't think it's diversification. As I understand it, the main goal of diversification is to reduce risk but allocating all capital to crypto doesn't seem to help us reduce risk. Because the whole market is completely dependent on bitcoin, so how can investing in altcoins be called diversification?

Diversification is only true when we invest in unrelated assets/investments like stocks, cryptocurrencies, gold, real estate...

Definitely, I agree with you. Notwithstanding anyone's projections on Bitcoin and other cryptos, it is always advisable to have some sort of diversification...

[Doan9269]

The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

This is not something bad as long as he's willing to hold for a time that the market rises up to a profitable amount he could wish as we keep launching into bullrun, it was advised that people should diversify in other not to rely on a single asset as source of an investment, though bitcoin should not be seen as such that may not be profitable, it only may require time to prove profitability, while for those investing on other assets, they can have an alternative as well to compliment each other anytime one is not performing well as expected, same applies also to bitcoin, we may be in the bear season, whereby the market continues to fall, but once we had an alternative asset, we may rely on that for the cover up before bitcoin bull season begins.

[tech30338]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

So he invest everything in bitcoin, not that bad, but if i were him i will spread some of my funds to other strong token, just to have other sources, but in you end, its not too late invest just some you are willing to lose, that is the game, other people are gambling too much, if you are not the type of the guy, why invest much, invest slowly, have you heard the news of someone invest 30$ daily non stop consistent, he is now 1Million dollar richer, not invest much but consistent, like saying its now how you start its how you finish.

[Ihedioral]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

Why , it's not advisable as an investor to depend fully on Bitcoin 
                                           

market price fluctuate, Bitcoin price can change rapidly , to predict market trends can be  risk.     

                                           
Investors should know how to handle there potential losses and manage their risk with a investment strategies not putting all penny to avoid a bigger lost                                     he can still make some income with the artwork while waiting for the Bitcoin market to hit the jackpot,,

[FortuneFollower]

Definitely, I agree with you. Notwithstanding anyone's projections on Bitcoin and other cryptos, it is always advisable to have some sort of diversification...

You may, but anyway, if you had the biggest part of the pie in BTC, you wouldn't regret it, probably.

[Smartprofit]

In my opinion, you (your friend) should adhere to the following investment strategy...🃏

If you are simply creating capital, then you should forget the word "diversification". It makes sense for you to focus on one type of asset. You will not be able to invest equally successfully in works of art, precious metals, stocks, bonds, alternative cryptocurrencies, bitcoin, memecoins, and so on. To succeed, you need to focus on one type of asset, you must study and understand the object that is the object of investment for you well. 🎯

If you (or your friend) strive to invest in all assets in a row, then you will be like a gambler who came to the racetrack and bet on all the horses at once. Of course, such a person will not be able to win in this game of chance. 🐎

But, I repeat, this is true only for a situation when you are still at the stage of creating capital. When you already have a large capital (you have already created it), then, of course, you should not forget the word "diversification".  And it makes sense for you to invest your capital in different types of assets - in bitcoins, in stocks, in real estate, in deposits in a commercial bank, in gold, and so on. After all, at this stage, it is more important for you to preserve your capital, rather than increase it. 🌐

Therefore, in my opinion, if your friend is just creating his capital, then you should not criticize him for focusing on bitcoins. Because if he seriously studies the first cryptocurrency - both in terms of technology, and in terms of current legislation, and in terms of pricing, then I have no doubt that success awaits him!🎂

[hero_the_bossman]

In my opinion, you (your friend) should adhere to the following investment strategy...🃏

If you are simply creating capital, then you should forget the word "diversification". It makes sense for you to focus on one type of asset. You will not be able to invest equally successfully in works of art, precious metals, stocks, bonds, alternative cryptocurrencies, bitcoin, memecoins, and so on. To succeed, you need to focus on one type of asset, you must study and understand the object that is the object of investment for you well. 🎯

If you (or your friend) strive to invest in all assets in a row, then you will be like a gambler who came to the racetrack and bet on all the horses at once. Of course, such a person will not be able to win in this game of chance. 🐎

But, I repeat, this is true only for a situation when you are still at the stage of creating capital. When you already have a large capital (you have already created it), then, of course, you should not forget the word "diversification".  And it makes sense for you to invest your capital in different types of assets - in bitcoins, in stocks, in real estate, in deposits in a commercial bank, in gold, and so on. After all, at this stage, it is more important for you to preserve your capital, rather than increase it. 🌐

Therefore, in my opinion, if your friend is just creating his capital, then you should not criticize him for focusing on bitcoins. Because if he seriously studies the first cryptocurrency - both in terms of technology, and in terms of current legislation, and in terms of pricing, then I have no doubt that success awaits him!🎂

A great and well-written answer.

Even by going only in BTC, he or his friend would succeed anyways, given the proper knowledge and time put into the process.

HODL is a true bliss to not spend nerves while staying afloat..

[Gaza13]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

Indeed, seeing your friends or colleagues achieve rapid success, especially in a new field like Bitcoin investment, can be very inspiring. However, the decision to leave a primary job or business and existing income, as you mentioned above, is something most people are not yet able to undertake, and it can be quite a risky step for most people's daily lives. As we know, the investment world is full of uncertainty and volatile or unstable prices. It's likely that if they're new to it, panic or psychological factors will certainly affect them, leading to losses. Perhaps you could talk to them directly about tips and tricks for achieving such rapid success. Who knows, your friend might be willing to share their knowledge with you?

[Zackz5000]

I think it's impossible to become successful in Bitcoin so fast unless maybe he was able to time the market correctly and accumulate aggressively or lump sum when the market was at dip and sell out when the price increase if this is what happened then it's not investment but trading/gambling.
Well it's very wrong to put all hope on one basket abandoning all other work and focus all on Bitcoin can be very problematic unless such person is gambling which is too risky maybe he never got the right knowledge about Bitcoin investment it is better he accumulate from his discretionary income using the DCA strategy and hodl for long, Bitcoin investment Is a long time Investment so we should accumulate with the amount we can afford to loss incase it doesn't went as plan it won't affect us emotionally.

[Dulen007]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

 OP, I’m happy your friend found quick success in Bitcoin, but to be honest, it’s quite rare for someone to just get into Bitcoin and suddenly make a fortune overnight.

Yes, Bitcoin can give good profits, but it’s also very volatile, and most people who do well with it usually build their position slowly over time through consistent buying and careful planning. Sometimes when people share quick success stories, they don’t mention how much they initially invested, how lucky they got with timing, or whether they actually cashed out those profits.

Leaving all other businesses just because of one quick win in Bitcoin can be risky. The market can change quickly, and if there’s no other income source, it can affect your financial stability and even your mental health.

I personally believe it’s better to keep your other businesses or sources of income while using Bitcoin as a long-term savings strategy rather than depending on it fully, especially in the early stages.

[hero_the_bossman]

I think it's impossible to become successful in Bitcoin so fast unless maybe he was able to time the market correctly and accumulate aggressively or lump sum when the market was at dip and sell out when the price increase if this is what happened then it's not investment but trading/gambling.
Well it's very wrong to put all hope on one basket abandoning all other work and focus all on Bitcoin can be very problematic unless such person is gambling which is too risky maybe he never got the right knowledge about Bitcoin investment it is better he accumulate from his discretionary income using the DCA strategy and hodl for long, Bitcoin investment Is a long time Investment so we should accumulate with the amount we can afford to loss incase it doesn't went as plan it won't affect us emotionally.

Bitcoin needs time, lots of it. Preferably - years, and more to come in order to gain the maximum value out of your BTC, when you would like to cash out.

[Hewlet]

i am tempted to make what would look like an harsh conclusion and it is the fact that your friend likely is not really into bitcoin because if he is actually a bitcoin investor, he should have known better that investing in bitcoin does not in any way stop one from involving in anything one desires to get himself involved in either it be business or doing the normal six to four job.

the volatility of bitcoin makes it a big risk to spend only on bitcoin for survival and if you are even an investor, it makes it worse because the plan of most investors is not to sell their holding so soon and use the proceeds that comes from it for personal needs. if you depend solely on your bitcoin holding, you might only stay invested for few years before you will spend everything off and discover that you no longer have any bitcoin in your possession any longer.

[MeGold666]

...
The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

If you're sure about the investment and planning to hold long term, I don't see a problem.

I'm an "all eggs in one basket" kind of guy myself and see diversified portfolios as a sign of uncertainty in an investment.

Is it risky? Yes. Is it substantially riskier than diversification? It depends. If you buy ten or twenty different cryptocurrency projects, that's very poor diversification and actually increases the risk of losing money with each project added.

If you diversify into other asset classes, like precious metals, real estate, etc., that's true diversification - and it's safer.

Now, we're talking about investment money - this does not include your overall wealth, which may already consist of assets from other classes.

I would never go "balls deep" into anything without having much else to fall back on.

/Over&Out.

[Z-tight]

What do you mean by he stopped his job in real life to focus on BTC, is he a BTC day trader? Because if he is just an investor, he can buy and hold faster than the snap of the finger. And if he left his job in real life to becomes a full time trader, then he is making a mistake. Trading is risky, but that's not even what i am talking about, he can trade if he wants to and if he has the skills to, but not full time, so that he can be able to keep his real life job, this is basic logic.

[FortuneFollower]

What do you mean by he stopped his job in real life to focus on BTC, is he a BTC day trader? Because if he is just an investor, he can buy and hold faster than the snap of the finger. And if he left his job in real life to becomes a full time trader, then he is making a mistake. Trading is risky, but that's not even what i am talking about, he can trade if he wants to and if he has the skills to, but not full time, so that he can be able to keep his real life job, this is basic logic.

It can be a proper side hustle, totally valid, otherwise, it may be too risky to put too much faith into making a fortune from becoming a trader, on BTC or something different.

[Leahized]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin.

Although Bitcoin is the greatest digital currency. However, whatever coin is the greatest, I think all the money in life should never be invested on a coin. Undoubtedly Bitcoin is a very good coin. However, not all Funds should be invested on this Bitcoin and can invest a maximum of 70% to 80% but the remaining 20% should be invested in other currency. This will reduce the risk of losing money and if investing in a coin reduces the price, then its funds will be greatly reduced. Although Bitcoin is an unstable coin, it will never be fixed. But now if Bitcoin comes down to 114k, we will see a lot more down. However, he should be patiently holding Bitcoin very patiently at this time. Since your friend is most likely to be upset at the market, and if he becomes impatient, you can sell bitcoin with many loss.

[moneystery]

i don't know if your friend is a bitcoin trader or exchanger, but it's actually quite risky because he's relying solely on bitcoin, which could drop, and that would impact his finances. if he were wiser, he could have continued running his business or even expanded it to increase his income. in this day and age, someone needs additional income to support their bitcoin investment. if they become overconfident and quit their jobs or businesses, i'm afraid it will disappoint them when the bitcoin price drops and impact their finances.

[philipma1957]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

I have a question what does all his resources mean?

As I understand English he is penniless other than the btc.

If he has a home he mortgaged it to the max.

If his has a job he maxed out his paycheck by taking loans.

All his credit cards are now maxed out.

And he needs btc to go up over night to be able to sell some profits to pay for normal shit.


Now all of the above is very likely not what you mean.

But it is what you said.

For me at the age of 68 I would never do that.

And successful people would not put that much on the line.

A loser with not much may bet it all because he or she would not have a lot to lose.

But a successful person will not play this percentage of their wealth.