How much think should be keep in mind when starting a Bitcoin investment ?

[AuchanX]

If you have know that you have a discretionary income to invest you can invest because i can't say mentioned any amount of money that someone need to have before they can start investing in BTC, i believe that people invest in bitcoin base on their financial strength, the most important thing is that you are buying bitcoin even though you can buying in a smaller unit doing that consistently and persistently for a longer years will give you a good bitcoin portfolio in the future.

You are right. There is no specific minimum amount when we invest. You can start with a small amount of discretionary income, understanding your financial capacity. So I think the question when we invest is not how much, but how and with what mentality we are investing, which is the most important.

We need to be aware of our cash flow. Many of us start investing right away but do not keep track of monthly income and expenses. Since Bitcoin is a highly volatile asset, we should buy it with money that we will not need in the short term. Otherwise, there is a risk of panic selling when the market falls. Which can defeat the long-term strategy.

We should invest consistently according to our capacity + long-term perspective + risk control. Together, these can be our real basis for building a sustainable portfolio.

[Pablo-wood]

We need to be aware of our cash flow. Many of us start investing right away but do not keep track of monthly income and expenses. Since Bitcoin is a highly volatile asset, we should buy it with money that we will not need in the short term. Otherwise, there is a risk of panic selling when the market falls. Which can defeat the long-term strategy.

It all begins with tracking our cash flow. Once we are conscious of our cash flow it makes it much easier to know how much is our discretionary amount. It is this discretionary  amount we can risk for long term goal. Most problems we encounter most times is trying to invest with money we need in a short term period. A money could still be discretionary and yet short term so all of this still needs to be considered.

We should invest consistently according to our capacity + long-term perspective + risk control. Together, these can be our real basis for building a sustainable portfolio.

Yes that is primarily it. Consistency is more important than the amount itself. One who is consistent for a very long time with a long term investment goal might even accumulate more than someone who has a huge amount to invest but isn't consistent with their investment plan and goal.

[Itz-prisigold]

It's not always as easy as we say, not everyone has a stable income that makes DCA method easy, so it becomes a bit inconsistent and over time the zeal and passion for investment dies off. We can all agree DCA method is the best method for long term investment but we cannot totally rule out the aspect of consistency in investments.

I cannot agree with this viewpoint because it assumes that because income is not stable,  it automatically makes disciplined accumulation impossible. This is exactly why discretionary income is a relevant concept.

A DCA strategy is not about putting in the same amount every single week or month,  it is about the ability to cover all the essential expenses, and then invest the money that is left over. So understand this, even if your income is not regular, as long as there is a discretionary income at any point, consistency is still possible,  and that's the beauty of having discretionary income. Consistency does not really mean inflexibility, so can adjust according to your financial capacity.

If your passion dies out because of how your money comes in, then the problem is not the DCA method,  it is about not having a good strategy in place or having too high expectations. Bitcoin accumulation was never designed to be aggressive;  so you can just accumulate gradually and sustainably.  This is why only investing discretionary  income is such a  good practice.

[JayJuanGee]

Since Bitcoin is a highly volatile asset, we should buy it with money that we will not need in the short term. Otherwise, there is a risk of panic selling when the market falls. Which can defeat the long-term strategy.

You seem to be a bit at a loss in regards to your ideas about how much money (or from where the money comes) can be put into bitcoin, AuchanX.

If you are an actual investor rather than a trader, and if you are actually trying to not be emotionally affected by BTC price moves, then you should be investing with money that you can afford to lose.

- which means, you don't need the money in the short term, medium term or even long term.

You are willing to give up on the money as if you were consuming the money, but at the same time, when you put the chosen amount into bitcoin, you do not get the benefits of consumption.

Sure, of course, no one invests in bitcoin with an expectation of losing money, yet instead we invest in bitcoin with an expectation that the future value of our investment will be worth more than the present value of spending (or saving) the money.

There are no guarantees with bitcoin, yet we should be putting money into bitcoin with an expectation that we could lose up to 100% of what we put in, yet we could get a reward that goes much beyond what we put into bitcoin and even higher than 100% - which is part of the reason that bitcoin is sometimes labelled as an asymmetric bet to the upside.

It's not always as easy as we say, not everyone has a stable income that makes DCA method easy, so it becomes a bit inconsistent and over time the zeal and passion for investment dies off. We can all agree DCA method is the best method for long term investment but we cannot totally rule out the aspect of consistency in investments.

I cannot agree with this viewpoint because it assumes that because income is not stable,  it automatically makes disciplined accumulation impossible. This is exactly why discretionary income is a relevant concept.

A DCA strategy is not about putting in the same amount every single week or month,  it is about the ability to cover all the essential expenses, and then invest the money that is left over. So understand this, even if your income is not regular, as long as there is a discretionary income at any point, consistency is still possible,  and that's the beauty of having discretionary income. Consistency does not really mean inflexibility, so can adjust according to your financial capacity.

If your passion dies out because of how your money comes in, then the problem is not the DCA method,  it is about not having a good strategy in place or having too high expectations. Bitcoin accumulation was never designed to be aggressive;  so you can just accumulate gradually and sustainably.  This is why only investing discretionary  income is such a  good practice.

For sure you are correct Itz-prisigold in regards to our abilities to choose to invest into bitcoin in a modest and/or conservative way and at the same time, having the possibllity to potentially profit stupendously from our bitcoin investment, even though we ended up investing relatively modestly.

You are also correct that expectations need to be managed in order that guys do not end up adding to (and potentially even causing) their own disappointment based on their expecting too much from the performance of their bitcoin investment.

[Olotu20]

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You are correct. I did misunderstand the angle that a person might be waiting for funds to come available.. and not just holding funds in order to buy the dip.

There also could be circumstances in which the dip inspires a person to engage in conduct to seek more money, whether it is looking for more work or maybe finding some assets and deciding to sell or some other additional behavior that was intended to generate more dollars to be able to buy bitcoin, while at the same time, having had been inspired to make the extra measures based on the extent of the dip.

Even though I frequently suggest to be careful in regards to changing aggressiveness in regards, to the dip, within reason those kinds of behaviors to seek out ways to generate (or get ahold of extra capital during dips) could end up working out favorably to accumulate extra bitcoin.

The dip should encourage investors who truly understands the potential benefits that, buying in the dip to look for extra income and buy the more. Because dips like we are experiencing now should be seen as an opportunity for any serious minded investor to look for extra income and buy and hodl, knowing that the price of Bitcoin will climb back to the top in the days to come. These are one of the ways you can distinguish real investors who is future minded and investors that are just investing for the sake of it. I will not advise anyone to go and sell of his property to invest in a volatile asset like Bitcoin but, for those who can take the risk and understand how Bitcoin works perfectly this dip is an investment opportunity for them as they can do anything possible to raise capital to accumulate the more and if there's a property that could be sold off to acquire more Bitcoin should be done because Bitcoin is worth taking the risk knowing how high that the price of Bitcoin was before coming down to this point.

[JayJuanGee]

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You are correct. I did misunderstand the angle that a person might be waiting for funds to come available.. and not just holding funds in order to buy the dip.

There also could be circumstances in which the dip inspires a person to engage in conduct to seek more money, whether it is looking for more work or maybe finding some assets and deciding to sell or some other additional behavior that was intended to generate more dollars to be able to buy bitcoin, while at the same time, having had been inspired to make the extra measures based on the extent of the dip.

Even though I frequently suggest to be careful in regards to changing aggressiveness in regards, to the dip, within reason those kinds of behaviors to seek out ways to generate (or get ahold of extra capital during dips) could end up working out favorably to accumulate extra bitcoin.

The dip should encourage investors who truly understands the potential benefits that, buying in the dip to look for extra income and buy the more. Because dips like we are experiencing now should be seen as an opportunity for any serious minded investor to look for extra income and buy and hodl, knowing that the price of Bitcoin will climb back to the top in the days to come. These are one of the ways you can distinguish real investors who is future minded and investors that are just investing for the sake of it. I will not advise anyone to go and sell of his property to invest in a volatile asset like Bitcoin but, for those who can take the risk and understand how Bitcoin works perfectly this dip is an investment opportunity for them as they can do anything possible to raise capital to accumulate the more and if there's a property that could be sold off to acquire more Bitcoin should be done because Bitcoin is worth taking the risk knowing how high that the price of Bitcoin was before coming down to this point.

Part of the reason that I tend to suggest that guys do not change their level of bitcoin accumulation based on dips is because the price could well keep on dipping, even though surely there also can be situations in which guys might be able to identify some other sources of income or sources of funds that they are incentivized to put into bitcoin - so for example, maybe they have an old motorcycle that is not working, and during the dip, they consider that maybe they could sell the motorcycle and use the money to buy some more bitcoin, and so they end up selling the motorcycle for $200 and then they try to decide if they are going to use all of the proceeds to buy at the current price and/or to structure some dip buying and/or to defer over the next few weeks.  They have options regarding how they might buy once the extra funds come available due to their decision to make some extra efforts to generate some more money.

Perhaps they also have a friend who had been ongoingly asking them to help out with a project that would allow him to earn an extra $100 per day for the next 5 days.  Previously, he did not want to participate in the project, yet since there is a dip, he decides to call back his friend and ask if the work is still available.  So there can be various ways that guys might employ some extra efforts to generate extra income that had been inspired based on our current dip situation.  It is up to the guy to decide and/or to figure out the extent to which, enough is enough, in the event that he ended up generating more income and then he bought bitcoin with the extra income, yet after he bought, the price kept dipping.

[Oshio-man]

You have really made good points here , with your knowledge of bitcoin investment, you can kick start your bitcoin Journey successfully.
While you are fully involved in the bitcoin investment, one thing you shouldn't forget is to keep yourself updated about the market trends, as a bitcoin investor, it is important you monitor your investment from time to time to enable you take the write decision and make necessary adjustment if their is any.

Maybe he don't have funds to invest in bitcoin, which is the challenge some people are facing in their various countries, not that they don't have the knowledge to invest in bitcoin to start making good income from bitcoin but the capital to invest in bitcoin is what is difficult for some of them to achieve, and once they see the capital I think they will do better than the ones that have been into the investment for long, you can't just invest funds in bitcoin and ignore the investment, you will create time to make sure you are monitoring the movement of the market to know if there is a progress or not because once there is a progress you will definitely see happiness around you, which is the wish of every investors.

[iBaba]

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You are right. There is no specific minimum amount when we invest. You can start with a small amount of discretionary income, understanding your financial capacity. So I think the question when we invest is not how much, but how and with what mentality we are investing, which is the most important.

Yes. You are right. There is nothing really like having a minimum amount when we are investing. Although when it comes to whether you should have a maximum, I will say yes. Knowing the maximum amount to invest in bitcoin among other cryptocurrencies is very important and helpful. In this case, what I will regard as the maximum amount for your investment is the amount you know you can afford to spend without having to go take loan elsewhere to survive.

That also means that your maximum amount for investment is not something that is static but something that should be flexible on the basis of your current income or financial condition. If you have enough this month, your maximum investment fund can increase but if you have less, your maximum investment fund should also reduce to face the reality of your situation at that time. The minimum investment fund can be the lowest the system can afford to take even if it is insignificant to you, however you can still set the minimum to a certain amount of money depending on your income, that’s if you have a stable income.

We need to be aware of our cash flow. Many of us start investing right away but do not keep track of monthly income and expenses. Since Bitcoin is a highly volatile asset, we should buy it with money that we will not need in the short term. Otherwise, there is a risk of panic selling when the market falls. Which can defeat the long-term strategy.

We should invest consistently according to our capacity + long-term perspective + risk control. Together, these can be our real basis for building a sustainable portfolio.

The reason you mentioned above and more are the reasons why we should even adopt the DCA method. I know there are only few people who can lump sum comfortably without shaking but majority of people including me cannot afford to invest through lump sums but rather through the DCA method being it monthly or on weekly basis. I’ve been wanting to ask this question, is it possible for investors to go into mutual funds investments in chin bitcoin?

[JayJuanGee]

[edited out]

I’ve been wanting to ask this question, is it possible for investors to go into mutual funds investments in chin bitcoin?

Paper bitcoin are not the same as real bitcoin... so it is good to keep that in mind whenever you are dealing with paper bitcoin products.

I tend to try to suggest that if guys are going to fuck around with trading, shitcoins, keeping some bitcoin on exchanges, and/or other variations of paper bitcoin products, that they should try to figure out limitations on those various products.. even though surely some folks get blinded by the various perks of something like paper bitcoin that might offer yield, tax benefits and/or also acceptability by the powers that be that see you as using their officially endorsed fake bitcoin.

So, yeah, each of us has to figure out our balances, and hopefully we are holding a sufficient amount of actual bitcoin rather than getting lured into inferior and frequently fake bitcoin products that may or may not be backed up by actual bitcoin as well as other shenanigans that the custodians of those various fake products engage in to manipulate bitcoin prices with various fake products... so, yeah, how much does any of us want to participate in such fake products that are used to manipulate bitcoin prices and to also track and control us and to try to dissuade us from being able to employ actual self-sovereignty (and financial sovereignty) with the value that we had worked hard to obtain and/or to hang onto once we acquired it..

[Achalugo BTC]

You didn't really miss anything, but you forgot to include back up fund, because back fund too is also needed on the Long run, since the fund usually work hand in hand with emergency fund, and you can also use back up fund to buy the dips when ever they occur and hold for long term. And secondly why using colours to bold your words? why not just use black to make it look mature and presentable, because if you ask me this your thread is now looking childish, because of the Bolding style, and you may likely not get the attention you're looking for, so in that case I will suggest you change those bold words colour to black colour. And When I started this forum as newbie just like you I was doing things the appropriate way, so doing things the appropriate way and stop all this childish things.

You are totally correct, which is why its always encouraged for people to always have other activities that will be fetching them more income, why its necessary and important is because, it will help them to hold for long term and concentrate on what they are doing, without any thing that will distract them. Which includes emergency and the risks but having the awareness of all it takes for one to be successful in their investment, they have to do the right thing by having backup fund as you highlighted earlier and also understand the risks involved and how one can help themselves when they are encountered by them.

[Itz-prisigold]

You are totally correct, which is why its always encouraged for people to always have other activities that will be fetching them more income, why its necessary and important is because, it will help them to hold for long term and concentrate on what they are doing, without any thing that will distract them. Which includes emergency and the risks but having the awareness of all it takes for one to be successful in their investment, they have to do the right thing by having backup fund as you highlighted earlier and also understand the risks involved and how one can help themselves when they are encountered by them.

Yes, having backup and emergency funds is essential,  especially in situations that are out of our control,  it truly helps to reduce pressure and makes it easier for you to hold your investment long term without any form of panic.  Risks awareness is also something that all investors should not ignore.

I consider having multiple sources of income to be more of an advantage rather than a strict necessity.  Of course,  having extra income can definitely make things more comfortable and it also reduces financial stress,  there is no argument there.

That being said,  not everyone has a way to build several or multiple sources of income immediately, and this does not automatically mean that they are unable to hold long term.  It's very possible to hold long term with just one steady income if you have a very good budget,  proper emergency planning, and disciplined use of your discretionary income, which can still allow you to stay consistent without any form of distraction.

Without a doubt,  having multiple streams of income is beneficial and it also strengthens financial position.  But I believe that having a responsible budgeting and  controlled expectations are the mean factors for  sustainable accumulation.

[Sim_card]

I consider having multiple sources of income to be more of an advantage rather than a strict necessity.  Of course,  having extra income can definitely make things more comfortable and it also reduces financial stress,  there is no argument there.

That being said,  not everyone has a way to build several or multiple sources of income immediately, and this does not automatically mean that they are unable to hold long term.  It's very possible to hold long term with just one steady income if you have a very good budget,  proper emergency planning, and disciplined use of your discretionary income, which can still allow you to stay consistent without any form of distraction.

Without a doubt,  having multiple streams of income is beneficial and it also strengthens financial position.  But I believe that having a responsible budgeting and  controlled expectations are the mean factors for  sustainable accumulation.

There are several ways to increase your income and not only by having several means of income. You can go learn a skill in the field to increase your income or you can upgrade your qualifications to increase your income. However, if your income isn't that big and you have a discretionary income, you are good to start your bitcoin investment and looks for means to increase your income so that you will have more discretionary income to DCA with.

It's good that along the line that you have started your bitcoin investment you figure out your own financial situation and learn to practice financial management because since you have started your bitcoin investment, you need to have a good cash inflow management to enable move on with putting a balance in your bitcoin accumulation and strengthen your own cashflow management.

[TokenTikas]

It's not always as easy as we say, not everyone has a stable income that makes DCA method easy, so it becomes a bit inconsistent and over time the zeal and passion for investment dies off. We can all agree DCA method is the best method for long term investment but we cannot totally rule out the aspect of consistency in investments.

Many people may disagree with your opinion but the point you raised here is actually a very important one. Even if someone’s income stays stable, their expenses do not always remain stable and because of that, maintaining DCA can sometimes become difficult. Usually, those who follow DCA try to invest the amount that remains after covering their expenses from their income. There are times when expenses suddenly increase and the remaining money also gets spent. These are normal life situations, so I don’t really see any strong reason to disagree. I have personally faced this kind of situation many times, so I understand that things can really happen this way.

However, if someone has a fixed income and their expenses are also within a fixed range, then they can regularly invest the remaining amount. But we still need to keep DCA in mind while managing other things, so that we can continue the investment process consistently.

[Silikiem]

You have really made good points here , with your knowledge of bitcoin investment, you can kick start your bitcoin Journey successfully.
While you are fully involved in the bitcoin investment, one thing you shouldn't forget is to keep yourself updated about the market trends, as a bitcoin investor, it is important you monitor your investment from time to time to enable you take the write decision and make necessary adjustment if their is any.

Maybe he don't have funds to invest in bitcoin, which is the challenge some people are facing in their various countries, not that they don't have the knowledge to invest in bitcoin to start making good income from bitcoin but the capital to invest in bitcoin is what is difficult for some of them to achieve, and once they see the capital I think they will do better than the ones that have been into the investment for long, you can't just invest funds in bitcoin and ignore the investment, you will create time to make sure you are monitoring the movement of the market to know if there is a progress or not because once there is a progress you will definitely see happiness around you, which is the wish of every investors.

Monitoring movements of the market trends is probably going to get you into emotional distress as time goes on and if that continues you might end up selling your bitcoin too early even when it’s not yet time to do so because you are panicking due to market fluctuations, and such mindset is likely going to make you a trader who’s in for a quick short profit making mindset which is not a good investment mindset.  As a true long  term investor who really wants to go far in bitcoin investment you don’t really need to be monitoring the market trends before you can buy and invest in bitcoin , what you need is to be focused on figuring out a discretionary income to consistently buy bitcoin and gradually build up your portfolio and hodl for long term purpose. Using the DCA method to invest will give you that sense of freedom away from market volatility as you can always buy bitcoin at any market price and hold with your discretionary income.

[Gost ms]

Monitoring movements of the market trends is probably going to get you into emotional distress as time goes on and if that continues you might end up selling your bitcoin too early even when it’s not yet time to do so because you are panicking due to market fluctuations, and such mindset is likely going to make you a trader who’s in for a quick short profit making mindset which is not a good investment mindset.  As a true long  term investor who really wants to go far in bitcoin investment you don’t really need to be monitoring the market trends before you can buy and invest in bitcoin , what you need is to be focused on figuring out a discretionary income to consistently buy bitcoin and gradually build up your portfolio and hodl for long term purpose. Using the DCA method to invest will give you that sense of freedom away from market volatility as you can always buy bitcoin at any market price and hold with your discretionary income.

DCA method is an investment method, if a person invests through DCA method, how can he maintain his discretionary income? If a person continues to buy using DCA method, he enjoys many more benefits than all other investment methods. But there is no possibility that he will be able to maintain discretionary income by buying through DCA method. The benefits that we get by investing through DCA method are. * Helps to reduce the risk in the field of investment to a great extent, * Will be able to buy at the average purchase price, * Will be able to quickly build confidence in Bitcoin to continue buying continuously. * Etc.

We have to manage our financial situation or discretionary income through proper financial management. If we are able to manage our discretionary income properly and if we do not invest the entire amount of money, then we will be able to protect our discretionary income from expenses or investments. It depends on us how we manage our discretionary income

[Shadiq]

Monitoring movements of the market trends is probably going to get you into emotional distress as time goes on and if that continues you might end up selling your bitcoin too early even when it’s not yet time to do so because you are panicking due to market fluctuations, and such mindset is likely going to make you a trader who’s in for a quick short profit making mindset which is not a good investment mindset.  As a true long  term investor who really wants to go far in bitcoin investment you don’t really need to be monitoring the market trends before you can buy and invest in bitcoin , what you need is to be focused on figuring out a discretionary income to consistently buy bitcoin and gradually build up your portfolio and hodl for long term purpose. Using the DCA method to invest will give you that sense of freedom away from market volatility as you can always buy bitcoin at any market price and hold with your discretionary income.

In the case of continuous buying, I prefer a fool who buys regularly according to his ability without looking at the market, rather than taking extra thoughtful steps. When someone starts observing the market regularly, it is natural for a person's mentality to change. He then starts thinking of himself as a wise person and thinks that he has an in-depth knowledge of the market movements, in this way the signs of a trader become noticeable in him. You may be inclined to take such steps as buying during bullish or falling markets and waiting for the dip.

If you continue to think of yourself as a fool, you will continue to take simple steps, buying without any thought when prudent money is available. It is very difficult for extreme drivers to win, so learn to be a fool here.