Investment Become Gambling

[Olatundespo]

It is not certain when the market will go, so if we are too confident and make decisions beyond our capabilities, then our problems may increase. Those who buy and sell in the short term only hoping that the price will increase, and when the price decreases, they decide to buy a lot more, even beyond their capabilities, then their problems may increase. Because if the price does not go up as they expect, then their panic will increase and as a result they may make wrong decisions, which can lead them to losses. The question is, for what purpose, with what mentality and with what money are you investing. If you invest with long-term objectives, invest through discretionary income, then there will be no problem.

Having the right mindset when investing in Bitcoin, makes them to be able to make decisions that are helpful and supportive in their journey of investment. Though, there are some times that Bitcoin will appear to be helpful, which will make investors to make decisions and at the end, the thing turn out to be what they didn't expect, that is why at times people are ought to stay calm and observe, because Bitcoin does confused people sometimes and if one is not being careful and observant, they will make decisions that will turn out to be a mistake that they will regret later in life.

If you are an investor, you can get confused when the situation goes against you. Consider this confusion as a catalyst and you need to move forward with the best strategy for them. Continuous buying can create a kind of mentality and this happens in reality. Sometimes thinking yourself overly knowledgeable through market analysis creates problems. After reaching the over accumulation height, your decisions may prove to be wrong if you are not able to continue accumulating till that point.

Part of the advantage in thinking about investing as a way to incrementally gain your position is that you may well recognize and appreciate that the price may well be going up and down and at the same time, that you have already decided that you are going to be investing into the asset for the long term and in the case of bitcoin having something like a 4-10 year or longer timeline will put you into a better kind of a mindset that does not expect to necessarily get positive concerns in the short term and even an expectation that the price will move against you, which largely just means continuing to buy it - unless you consider that your investment thesis has been broken based on the price going down and perhaps other factors.

Keeping on buying is a great way to continue to reinforce that you are investing rather than trading.. and by extension, you are not gambling either.  You are putting money into something that you tend to believe has good chances of going up in price, even though in the short term you might not have confidence of the price direction.

Keeping on buying Bitcoin regularly it is almost certain that investors are not involved in gambling like short term trading. I agree with you on this point. Real investors keep their buying regular even in the expansion or contraction of the market price. Traders find various excuses not to buy. The risk of investing in Bitcoin can be reduced to a large extent but even then, if the guys cannot use that opportunity they will have to suffer the consequences of their wrong decisions.

Regular buying are a well-structured investment strategy through which you can potentially increase the value of Bitcoin in the future as you hold it. An example is that a small fund gradually grows in size with the long term mentality and proper fund management. If someone is skeptical about Bitcoin price appreciation but they can still accumulating Bitcoin for 4-10 years through discretionary income, they may be surprised by the financial gains after that period as seen in the example of early Bitcoin investors.

[Cgrexp]

Some people overdo it with backup funds and waste time in starting their investments. As soon as a new investor makes Bitcoin accumulation comfortable, he should set his her goals and gradually focus on building an emergency fund to do so. Surely... I completely agree with you that it is not necessary for a new investor to have an emergency fund in the beginning, nor would it be right to completely reject it. Balancing between accumulating Bitcoin and long term efforts is like you never know if there will be a bad time in your life in the future. You have to assume that bad times are waiting for you and be mentally and physically prepared.

Investors are responsible for their own preparation. This includes deciding how much of their discretionary income to invest in BTC, how much to keep in cash (such as an emergency fund), and how much to spend on additional expenses. However, there may come a time when they do everything right and still suffer losses. While investing and cash flow management are designed to minimize mistakes and risks, they cannot protect us completely in all situations. While an emergency fund may be helpful in some cases, it may not be enough to cover serious or long-term losses. Others sell too much Bitcoin too quickly because they do not have enough savings, which is a result of their own lack of preparation. And if the situation worsens, or if losses could have been avoided or minimized, they must take responsibility for how to strengthen or improve their cash flow management systems and practices for the future.