Common mistakes in Bitcoin Investment.

[Fiatless]

To add one more point to the OP Na say make you no go borrow money to buy bitcoin believing say you go make profit from your bitcoin investment after you sell am pay back your loan because this go land you inside big wahala. E no good to take loan invest in bitcion because Na only your extra money Na e qualify to use invest for bitcoin. You need to also know how to manage your UTXO to avoid too many small small transaction for your wallet in future if not you go dey use high money pay for transaction fee.

Some of the businesspeople who invest in several assets borrow from banks. They have also built a system that can aid them in paying back these loans.

I am not giving any financial advice, but it might not be a totally bad decision to buy Bitcoin with borrowed funds. I know that several risks are associated with it, but no risk, no gain. If you have other means to pay the loan in case of unforeseen circumstances, investing in Bitcoin could be highly profitable. But you would have to consider the interest and the projected returns from the investment.

[obuoma]

To add one more point to the OP Na say make you no go borrow money to buy bitcoin believing say you go make profit from your bitcoin investment after you sell am pay back your loan because this go land you inside big wahala. E no good to take loan invest in bitcion because Na only your extra money Na e qualify to use invest for bitcoin. You need to also know how to manage your UTXO to avoid too many small small transaction for your wallet in future if not you go dey use high money pay for transaction fee.

Some of the businesspeople who invest in several assets borrow from banks. They have also built a system that can aid them in paying back these loans.

I am not giving any financial advice, but it might not be a totally bad decision to buy Bitcoin with borrowed funds. I know that several risks are associated with it, but no risk, no gain. If you have other means to pay the loan in case of unforeseen circumstances, investing in Bitcoin could be highly profitable. But you would have to consider the interest and the projected returns from the investment.

I agree with you Sir because I know some government loans that could be suitable for Bitcoin investment due to their repayment duration that is usually long and their interest which is usually small. If someone access these loans that have over 5 years repayment and the interest is just 5%, such can be used to invest in Bitcoin. The one I will not encourage is for someone to invest in Bitcoin, a loan whose maturity is just one year, that will not end well as it may lead to more troubles for the investor.

[Nwada001]

Some of the businesspeople who invest in several assets borrow from banks. They have also built a system that can aid them in paying back these loans.

I am not giving any financial advice, but it might not be a totally bad decision to buy Bitcoin with borrowed funds. I know that several risks are associated with it, but no risk, no gain. If you have other means to pay the loan in case of unforeseen circumstances, investing in Bitcoin could be highly profitable. But you would have to consider the interest and the projected returns from the investment.

This is a different case, dude, compared to the instance given my frank opinion.

If you have a source where you are earning money from, you can take a loan if you must and repay that loan using another source of income, which is understandable. It's just like you already have expected income, but it has not yet arrived, but you need to take advantage of a cheap price. I know in such a situation you can, and when the expected money comes in place, you repay; you don't take the loan and expect to pay back with the profit you make from that business, which is not a good business move, which is what I believe Frank was trying to spell out.

[Mr Reporter]

Good topic OP and well said. Another mistake that most people make in bitcoin investment that i feel is not really talked about very well in our local board and even the forum generally is them not keeping their emergency funds stable and liquid. Somebody was arguing with me on this thread yesterday that it is better to save emergency funds in the form of bitcoin and I disagreed with him and tried to make him see reasons why that was a bad idea but he was adamant so i want to hear the opinion of others on this too cause i don’t want it to seem like i’m so kind of “Mr Know It All”

I was laughing having to hear you talk about you been “Mr know it all” well I would say you shouldn’t call yourself such…well I would just say you were only just trying to proof your own point…I would say you were only just trying prevent someone from selling their sats at some amount for o just pay hospital bills then like watching it hit $100k but that just the real idea…

[GiftedMAN]

Overlooking security

Every Bitcoin investor needs to understand the need to tighten up their security after investing in Bitcoin because without having strong security you may be investing for hackers and scammers to enjoy. Op mentioned different measures to take to safeguard your investment and the best wallet to use but he failed to take about being secretive or private about your investment as a part of security because some investors may have all the experience and follow up all the necessary things you mentioned but at the end you see them bragging about how much they have invested in Bitcoin and how much money they will make as profit which exposes them to harm or danger.

It is important for every investor to also be guided by their words and their actions when they are in the public, they should keep everything about their investments private because if they let bad people know about what they have they could harm them to steal what they have in their wallet.

[Moreno233]

All the points you have raised are very good and solid points and I want to comment on two of them. The first is investing with emotions which you nicely explain siting social media and news outlet as where investors go for information and are often mislead. That is absolutely right, a lot of investors seek public opinion through trend and hypes and end up investing with too much expectations, impatience and sometimes into the wrong asset like pump and dump coins. A lot of this emotional investment can be corrected if people rely on a forum like this where people share proven information and methods and where you have successful investors that have endured different market conditions. Furthermore, limiting investment to asset like Bitcoin and employing investment strategy like the DCA method will completely eliminate this emotional investing.

The second part I want to comment on is the aspect of investing the wrong funds into Bitcoin such as borrowed money. Just like many people have said, there are cases in which borrowed funds can be used to make investment in Bitcoin and it will not amount to a mistake. It just depends on the condition of the loan which the investor must first analyze and examine the feasibility of using it for volatile asset like cryptocurrency.

[Padi24]

I agree with you Sir because I know some government loans that could be suitable for Bitcoin investment due to their repayment duration that is usually long and their interest which is usually small. If someone access these loans that have over 5 years repayment and the interest is just 5%, such can be used to invest in Bitcoin. The one I will not encourage is for someone to invest in Bitcoin, a loan whose maturity is just one year, that will not end well as it may lead to more troubles for the investor.

I don't think is advised to invest with loan money no matter the duration or how some the interest might be, reason been that there's no certainty or guarantee of becoming successful in your bitcoin investment. Before taking a loan with the aim of investing it in bitcoin this is what you should consider first, it seems that some folks disregard these aspect I'm talking about since there has been an increase in the value over the years we all believe that if we invest and HODL for Long term that we would be in profit but is still under probability as we are not sure about it.

[Achalugo BTC]

I don't think is advised to invest with loan money no matter the duration or how some the interest might be, reason been that there's no certainty or guarantee of becoming successful in your bitcoin investment. Before taking a loan with the aim of investing it in bitcoin this is what you should consider first, it seems that some folks disregard these aspect I'm talking about since there has been an increase in the value over the years we all believe that if we invest and HODL for Long term that we would be in profit but is still under probability as we are not sure about it.

Although, there are some persons that don't like taking loan to invest in their businesses, especially if its a new one because they believed that money that its being taking as loan doesn't always bring luck to the person that take the loan. Aside that, its not even advisable for one to take load for them to invest in Bitcoin, especially if they are beginners, as they might loss everything in it due to how fluctuating the market price might be. So, its best for them to work out their own way in achieving her success.

[Plutomanian]

Although, there are some persons that don't like taking loan to invest in their businesses, especially if its a new one because they believed that money that its being taking as loan doesn't always bring luck to the person that take the loan. Aside that, its not even advisable for one to take load for them to invest in Bitcoin, especially if they are beginners, as they might loss everything in it due to how fluctuating the market price might be. So, its best for them to work out their own way in achieving her success.

Faith without work is dead, everyone have what it takes to run a business and become really successful and good at it. But why are not seeing the main success? I will tell you because most of us are just here to ensure we're reaping every moment to enjoy ourselves and not always ready to take a calculated deserve risks, we should be always ready to know what's coming for us and become very advanced in everything we do. Talking about taking loans, it do help in our everyday business but what's the repercussions because not everyone can be stable enough to pay back especially when you're granted a loan and you end up not utilizing it effect towards your business, what comes after that?

[Cossyblack]

Good topic OP and well said. Another mistake that most people make in bitcoin investment that i feel is not really talked about very well in our local board and even the forum generally is them not keeping their emergency funds stable and liquid. Somebody was arguing with me on this thread yesterday that it is better to save emergency funds in the form of bitcoin and I disagreed with him and tried to make him see reasons why that was a bad idea but he was adamant so i want to hear the opinion of others on this too cause i don’t want it to seem like i’m so kind of “Mr Know It All”

I understand you correctly and all that you have said is correct.. Emergency fund must never be invested in an asset like bitcoin because it is volatile.. The purpose for keeping an emergency fund is to protect your bitcoin investment from real life emergency..real life emergencies occurs expectedly and for that reason,your emergency fund should be kept in the bank or somewhere accessible so that when there is an emergency situations,your emergency fund can be quickly and easily accessible  to address the emergency situation.

[Freeveto]

Investing with the wrong funds
There are essential things humans can't live without for, food, clothing and shelter including some secondary things like paying utility bills and so as an income earner those are the things to be sorted out before using the remaining (discretionary funds) for investment. Some people use funds outside the discretionary out of ignorance for investment but there are some people who knowingly risk doing it, not minding that Bitcoin requires long term holding and it's volatile. Another mistake we forget is that as humans we'll likely encounter different emergemcy situations and use a money gotten from the discretionary fund (emergency funds) for investment. It's wrong and would lead to complications on the long run.

Note: I don't know if a similar post have been created before but I'll lock the thread if it has. However, these are the ones I've taken note of so far, i know that there are more so feel free to give your opinion concerning the ones i mentioned or discuss about the ones you know that weren't mentioned.

Above all, this is one of the most important point in this thread because this will still bring you back to zero if you as investor overlooked it.

From borrowing money to invest due top FOMO, which don't usually end well because you as an investor that take loan to invest will be thinking of paying with interest, profit, and also not to lose the money in the investment; for this reason, you will be desperate for the coin to pump because if it dips more, you are automatically in debt and will have to pay with interest because once you notice the market is going down, you will have to sell to be safe which will never allow you get good profit from your investment.

Furthermore, some investors also don't take their basic needs into consideration when they are about to start their investment, they will mainly focus on the investment and forget to reserve some money against any emergency. If they failed to reserve the money, they will be forced to sell their investment in case of any emergency which will automatically affect their saving plan. Therefore, invest the little money you have through DCA method, and keep accumulating until you have enough.

[Uhwuchukwu53]

All the alpha mentioned are factor which most at time is inevitable to course of failure,but I will emphasize on this aspect which is "knowledge " it's the primary element to escape this common mistake many investor runs into an investment without knowledge and understanding the call element of running the business and begin to learn while they are in most time learn when it's already given them negative sign of failing. The second aspect is inability to endure the challenges facing the business or investment they engaged on many have the phobia and panic pressure that they don't want anything that goes contrary to their plan once it happens yhey have loss hope and may not dare to continue all are still part of mistake many make that leads to their total failure in Bitcoin investment and others area of investment.