Can small investors actually make good profit with bitcoin ?

[Lannakosa]

I guess this is the more reason you should learn about investing using the DCA method because if you understand this method of investment or approach you won't be asking this question because the method will help you accumulate at any given period of time using your discretionary income and sometimes you may not know when you  will grow your portfolio so high that Is why one amazing thing in using the DCA method. Being small investor doesn't deprive one from making good return the most important thing about Bitcoin investment is consistency.

You can make a profit, but how long would you have to wait for it? After all, Bitcoin is an asset that takes years to go from the bottom to the top. And I think very few people will manage to buy exactly at the bottom and sell exactly at the top. So that’s something you also have to take into account.

Unless you’re buying Bitcoin as a long-term investment. But if that’s the case, it could take several cycles, which would extend the waiting time for a profit even further. At the same time, Bitcoin rises and falls a little less with each cycle. So perhaps for small investors, the potential profit won’t be all that significant.

[Stive009]

I guess this is the more reason you should learn about investing using the DCA method because if you understand this method of investment or approach you won't be asking this question because the method will help you accumulate at any given period of time using your discretionary income and sometimes you may not know when you  will grow your portfolio so high that Is why one amazing thing in using the DCA method. Being small investor doesn't deprive one from making good return the most important thing about Bitcoin investment is consistency.

You can make a profit, but how long would you have to wait for it? After all, Bitcoin is an asset that takes years to go from the bottom to the top. And I think very few people will manage to buy exactly at the bottom and sell exactly at the top. So that’s something you also have to take into account.

Unless you’re buying Bitcoin as a long-term investment. But if that’s the case, it could take several cycles, which would extend the waiting time for a profit even further. At the same time, Bitcoin rises and falls a little less with each cycle. So perhaps for small investors, the potential profit won’t be all that significant.

Sir this is exactly why it is said that Bitcoin should be held for the long term rather than for short term profit. In my opinion The minimum plan of a Bitcoin investor should be at least 4–10 years. Because the longer you can hold it the more opportunities there are to go through the market cycle and the possibility of making a profit increases.

And in the case of Bitcoin there is no need to think that you have to buy at the lowest price and sell at the highest price. Whether your portfolio is small or large when the market goes up by 80% just as if you have 100 Bitcoin you will gain 80% just as if you have 3 Bitcoin you will gain 80% on those 3 Bitcoin. That is the movement of the market is the same for everyone the only difference is how many Bitcoins you have.

So the potential of Bitcoin is no less important for small investors. The main thing is not how many Bitcoins you start with, but how long and how disciplined you accumulate.

For me a better approach is to slowly accumulate Bitcoin by DCA from your discretionary income. There is no pressure to catch the lowest or highest price. When long term holding is the main plan it is more important to keep your accumulation plan in place than to panic about where the price has gone in a few market cycles. Patience and consistency are more important than quick profits in Bitcoin.

[Different patterns]

What's important here is that they should not be planning on paying off the loan from their investment, they have to do so from their discretionary income which means they should only take the loan if they believe their discretionary income over time will be able to pay it off.

I agree with this 100%. I even must say that being so much against loans I didn't think of that option. And it's a good option. Thanks for pointing it out, mate!

I don't support borrowing to invest in bitcoin because it often make the investor restless and impatient.  As you are already aware, what the investor should invest in bitcoin and have ease is his discretionary income which you know that loan is not one. Taking a loan to invest in bitcoin also means violating the requirement of investing what you can afford to lose or lets say keep in bitcoin for more than five years. Since we now that loans come with interest, losing the money or seeing it in heavy draw down will harm the investor so bad that they might consider selling at loss to payback the loan to avoid compounding the interest. This is not a nice experience that the bitcoin investor would love to have. So we should strictly keep it at investing only from the discretionary income.

For me I don’t see that idea of borrowing money to invest in bitcoin as a best approach, investor should always invest in bitcoin with money that they can always comfortably afford to leave untouched for long term, not that bitcoin have some bad, but the way some people enter bitcoin investment matters, when borrowed funds to invest, normally there’s repayment date that waiting for you, which may completely distract your attention from focusing long term investment,

One of my reasons why is not advisable to use loan money to invest, is that in a situation where you are seeing your investment fall badly, in that situation even with all trust you have for bitcoin, it will become difficult for you to stay patient without selling your bitcoin, when you know that you have loans to clear ahead of you, you will end up at loss, just to settle the loan. I always advise people to use their discretionary income to invest and avoid loans.

[leonair]

are there other ways to make money with bitcoin as a small investor rather than just buy and hold?

Small investors cannot make good profits from Bitcoin in any other way than buying and holding Bitcoin. Because good profits in a short time never come from small investments. Just as a good profit can be generated from a large investment in a short time, there can also be large losses. When an investor makes small investments but continues his investment by following DCA, he can gradually accumulate a good amount of Bitcoin. In this case, even big investors sometimes cannot make the same profits because if the big investment is not held for a long time, then they cannot retain their profits. To get good profits from a small investment in Bitcoin or any big investment, there is no alternative to holding it for a long time.

[Betwrong]

~ if they believe their discretionary income over time will be able to pay it off.[/b]

~

~ So we should strictly keep it at investing only from the discretionary income.

~One of my reasons why is not advisable to use loan money to invest, is that in a situation where you are seeing your investment fall badly, in that situation even with all trust you have for bitcoin, it will become difficult for you to stay patient without selling your bitcoin, when you know that you have loans to clear ahead of you, you will end up at loss, just to settle the loan. I always advise people to use their discretionary income to invest and avoid loans.

That's what we are talking about here, investing only from the discretionary income. No one is saying, "take a loan and invest everything in Bitcoin". That would be too risky. Bitcoin is a great thing, investment-wise, but we can make even the greatest thing bad if we use it unwisely. If you think you might need the money in the near future — don’t invest it in Bitcoin, don’t invest it in anything.

[Princess Leah]

Small investors cannot make good profits from Bitcoin in any other way than buying and holding Bitcoin. Because good profits in a short time never come from small investments. Just as a good profit can be generated from a large investment in a short time, there can also be large losses. When an investor makes small investments but continues his investment by following DCA, he can gradually accumulate a good amount of Bitcoin. In this case, even big investors sometimes cannot make the same profits because if the big investment is not held for a long time, then they cannot retain their profits. To get good profits from a small investment in Bitcoin or any big investment, there is no alternative to holding it for a long time.

That's true except the person want to risk losing money consistently and hope on hitting it big one day which might never happen (trading) buy and holding is the only true way anyone including small investor can profit with Bitcoin, it is very boring cause it takes longer but it's worth it.

 Bitcoin has been very progressive throughout it's existence, it has undergone different corrections but still increased in value and the longer it's held the more valuable it becomes so if a small investor consistently buy in bits then therefore hope for a bigger reward in the future when Bitcoin goes higher.

[adultcrypto]

That's what we are talking about here, investing only from the discretionary income. No one is saying, "take a loan and invest everything in Bitcoin". That would be too risky. Bitcoin is a great thing, investment-wise, but we can make even the greatest thing bad if we use it unwisely. If you think you might need the money in the near future — don’t invest it in Bitcoin, don’t invest it in anything.

The idea of taking a loan to invest in bitcoin is a bad advice suggested by people wo might just want to make sense in this discussion even though they know that what they are saying does not make sense. How can you borrow money to invest in bitcoin when we know that one should only invest from their diacretionary income and money they can afford to lose? Borrowed money is not discretionary income and must not be lost because losing them will create problems for the investor. This is not how it is designed to be, the investor should only invest from money that is his and after taking out money for his basic needs.

[Hardyrobust]

That's what we are talking about here, investing only from the discretionary income. No one is saying, "take a loan and invest everything in Bitcoin". That would be too risky. Bitcoin is a great thing, investment-wise, but we can make even the greatest thing bad if we use it unwisely. If you think you might need the money in the near future — don’t invest it in Bitcoin, don’t invest it in anything.

The idea of taking a loan to invest in bitcoin is a bad advice suggested by people wo might just want to make sense in this discussion even though they know that what they are saying does not make sense. How can you borrow money to invest in bitcoin when we know that one should only invest from their diacretionary income and money they can afford to lose? Borrowed money is not discretionary income and must not be lost because losing them will create problems for the investor. This is not how it is designed to be, the investor should only invest from money that is his and after taking out money for his basic needs.

it is indeed a bad idea for someone to take loan and to invest in bitcoin considering the nature of risk that is involved in bitcoin investment. People should only invest in bitcoin based on their financial capacity by investing with their discretionary income that is money they can afford to lock up for years and they won't be needing for any essential expenses. It is only those that feel that they can out smart the market that may want to take the risk to take loan especially during bear market but this is a bad way to approach bitcoin investment as it is not easy for them to predict correctly how the market will turn out in the future. Taking loan to invest in bitcoin is something that should be avoided.

[katanic97]

Small investors cannot make good profits from Bitcoin in any other way than buying and holding Bitcoin. Because good profits in a short time never come from small investments. Just as a good profit can be generated from a large investment in a short time, there can also be large losses. When an investor makes small investments but continues his investment by following DCA, he can gradually accumulate a good amount of Bitcoin. In this case, even big investors sometimes cannot make the same profits because if the big investment is not held for a long time, then they cannot retain their profits. To get good profits from a small investment in Bitcoin or any big investment, there is no alternative to holding it for a long time.

That's true except the person want to risk losing money consistently and hope on hitting it big one day which might never happen (trading) buy and holding is the only true way anyone including small investor can profit with Bitcoin, it is very boring cause it takes longer but it's worth it.

 Bitcoin has been very progressive throughout it's existence, it has undergone different corrections but still increased in value and the longer it's held the more valuable it becomes so if a small investor consistently buy in bits then therefore hope for a bigger reward in the future when Bitcoin goes higher.

The consistency of investing is important. If you are patient and invest regularly, generally there are no problems for people like that. Sometimes you can also make a good profit, but in general, holding and buying regularly is the key

[samadam007]

Even if there's a dip, your bitcoin is still in your wallet. It's only the dollar value that depreciated but that doesn't mean anything as long as you didn't sell because the price will bounce back and create a new ATH which should be a good motivation to you to continue accumulating bitcoin based on history.

Bitcoin recovered from big drops in the past and went all time high but that can’t guarantee what will happen in future…. Reason why long term investors not build their strategy around any expectation what price will do. You accumulate because you’re using a sustainable amount, understand its risks and investing with money you can afford to leave over time, not assumptions and expectations.

[Felicity_Tide]

~snip

One of my reasons why is not advisable to use loan money to invest, is that in a situation where you are seeing your investment fall badly, in that situation even with all trust you have for bitcoin, it will become difficult for you to stay patient without selling your bitcoin, when you know that you have loans to clear ahead of you, you will end up at loss, just to settle the loan. I always advise people to use their discretionary income to invest and avoid loans.

There's a point here, but what if Bitcoin eventually does well... Does it still makes this reason valid?.
Afaik, There's only one reason why taking a loan to invest is never a good idea, and that reason is because loans are not discretionary incomes. Don't know about you, but the purpose of loans are primarily meant to address urgent needs especially in times of desperation. Bitcoin investment should be done when a person is financially at eased and not when they're in a tough spot.

Making good profits is unarguably achievable, but it's important that investors don't make decisions that might eventually end up complicating their Bitcoin investment.

[ruykeri]

Even if there's a dip, your bitcoin is still in your wallet. It's only the dollar value that depreciated but that doesn't mean anything as long as you didn't sell because the price will bounce back and create a new ATH which should be a good motivation to you to continue accumulating bitcoin based on history.

Bitcoin recovered from big drops in the past and went all time high but that can’t guarantee what will happen in future…. Reason why long term investors not build their strategy around any expectation what price will do. You accumulate because you’re using a sustainable amount, understand its risks and investing with money you can afford to leave over time, not assumptions and expectations.

I agree with you. Bitcoin price cannot be predicted accurately. There is no guarantee that bitcoin will always give the same reaction. Therefore, we should keep a long-term mindset and do DCA with discretionary income. If you invest by following the DCA method, there is no problem in predicting the price. You should never make any decisions by looking at the short-term price movement. It is never possible to predict the short-term price of bitcoin. But in the long term, bitcoin has repeatedly given profits, although this is not guaranteed, but it can be understood by looking at its past price status. Therefore, a backup fund should be kept so that bitcoin does not have to be sold at an untimely price drop. And if the backup fund is strong and discretionary income is coming regularly, then panic selling or forced selling can be avoided.

[Obulis]

Investing is not a way to get rich overnight. There are many investors who started with very small amounts of money   held onto their investments for a long time and with the increase in the price of Bitcoin, those small investments have also become big assets.
The importance of investing in small amounts has not diminished in the present times. For new investors, it is often more realistic to start with small amounts. This helps in understanding the fluctuations of the market and also in developing the habit of managing one's money. The habit of investing regularly monthly or weekly can help one become patient and disciplined. One should not use money for investment that is needed for daily needs or essential financial responsibilities. First, one should understand the calculation of one's income and expenses, then one should invest a portion of discretionary income that will not affect financial stability even if it temporarily declines in value.

Some people view the investment based on the money they can put a day, instead of them to see it as something they can consistently do for over a years. Some folks mind is that you must set aside a big amount of money before investing in bitcoin. which I see it as wrong approach. Starting  with little amount has being a best approach in bitcoin investment. It may not look meaningful at beginning, but with time and patience can make a big difference. I like the idea of not investing funds that’s very important to you, because there is no way, you are building wealth and ignoring your basic needs, that investment may not move as you may expect it. It better to invest with money that can be leave untouched and give your investment enough time.

For sure the difference will be very clear and large regarding having these small amount in fiat or spent unaccounted for. Some people are not holding Bitcoin today because of these assumption and misinformation that Bitcoin is just for the rich without the slightest idea that there is a humble beginning in Bitcoin whether in how much you can invest or in the level knowledge about Bitcoin or other things. This humble beginning has made a great difference, Imagine a humble beginning of two years ago or more.

[Franctoshi]

Small investors can profit but depends on two things; the amount of money used and the duration of time they can hold their Bitcoin investment, that's how long that you're willing to hodl because we can't put in money into Bitcoin today and tomorrow expect to see profit, Bitcoin isn't magic money assets, but it rewards those that has patient holding it. Generally, Bitcoin rewards you over time, and that's one well-proven method to be profitable as a small investor.

[ejikeme24]

That's what we are talking about here, investing only from the discretionary income. No one is saying, "take a loan and invest everything in Bitcoin". That would be too risky. Bitcoin is a great thing, investment-wise, but we can make even the greatest thing bad if we use it unwisely. If you think you might need the money in the near future — don’t invest it in Bitcoin, don’t invest it in anything.

Bitcoin investment is worth giving a trial, and in as much as I would advise people to invest in it I will also let them know that it is wrong to invest with loan money because Bitcoin investment is not a Short term investment or scheme that you will invest today and start expecting reward in a week or two. In bitcoin investment you have to exercise patient before you could get a better return even though there's no guarantee about the return but one thing I believe is that whoever that held his or her bitcoin for Long probably 5-10 years or more will not regret ever holding Bitcoin for Long term.

[Homemade-IQ]

Small investors can profit but depends on two things; the amount of money used and the duration of time they can hold their Bitcoin investment, that's how long that you're willing to hodl because we can't put in money into Bitcoin today and tomorrow expect to see profit, Bitcoin isn't magic money assets, but it rewards those that has patient holding it. Generally, Bitcoin rewards you over time, and that's one well-proven method to be profitable as a small investor.

Their is no discrimination when it comes to Bitcoin investment, it's both for the rich and the poor, so if a small investor, invest in bitcoin and wishes to be successful with his investment, he needs to accumulate Bitcoin consistently in other to build a valuable stash of bitcoin, that way, when Bitcoin has grown to a magnificent amount in the future, he can be profitable, because consistency in his accumulation and holding for a long time as you have said, is the only way a small investor can invest in bitcoin and be successful.

[JayJuanGee]

Exchanges are actually like a temporary stopover (transit) in long-term Bitcoin investing. Buy, hold for a while, then transfer to a dedicated Bitcoin wallet. If you buy and hold there with the sole purpose of selling later, that’s trading. Right?
It’s not a bad investment strategy to expect a profit, because as far as I know, the fundamental purpose of investing is to make a profit and protect your wealth against inflation and similar risks.

Hold for a while in exchanges? No dear that's not advisable, you buy and transfer immediately to a safe wallet, you're not trading bht intentions of buying is to hold for long term so what's the neee of holding for a while in the exchange? You can only hold there if your intentions is to trade with it.

 People have their different reasons for choosing Bitcoin which is not basically about profits, moreover you don't expect what's not guaranteed but invest and believe that the investment would bring good result in the future. Infact profit shouldn't come first or in between bht last which is after years of accumulation.

If a guy is investing $10 per week in bitcoin, it hardly makes any sense, to me, for him to transfer out of the exchange, and maybe he might want to wait until he gets around $500 before he transfers out... which would be right around a year.

Sure, guys have to figure out their own balances, yet to me it seems quite problematic for guys to have a system in which they have numerous UTXOs.  Not only are there exchange fees, but there are also onchain transaction fees based on each UTXO, which might not be easy to predict into the future.

Hold for a while in exchanges? No dear that's not advisable, you buy and transfer immediately to a safe wallet, you're not trading bht intentions of buying is to hold for long term so what's the neee of holding for a while in the exchange? You can only hold there if your intentions is to trade with it.

I don't think you are understanding why he said that, because the truth is that, you cannot be transferring every $10-20 or even $50 worth of Bitcoin to an exchange because the fee will be too much, and you will be at the losing end, so the wise thing is to buy and accumulate it there, until it has grown and is worth more than $200, that way you wouldn't be paying fees every now and then.

So it's not a bad idea to keep the little unit of Bitcoin bought in an exchange until it has grown to something reasonable before you moves it to a more secured self custodian wallet.

I am currently using only Trust Wallet as my wallet because, first of all, it is a multi-coin wallet that supports any coin. It seems very safe to me, and as an exchange, I use Binance, OKX, and ByBit. I usually transfer $15- $20 worth of BTC from Trust Wallet to Binance. It is very surprising that I only pay $0.10-15 cents in transaction fees. I don't know about BTC transaction fees in other wallets, but Trust Wallet does BTC transactions at very low fees. If it is an amount like $200, $400, or $600, it can be kept in a reputable exchange, but if it is a large amount like $1000, I do not recommend holding it in an exchange because exchanges are never 100% safe. We know that control of our assets on the exchange is in the hands of the exchange's owner.

Trust Wallet is closed source and it is owned by Binance, so keeping bitcoin (or other crypto) on Trust Wallet is not any better than keeping them on an exchange.

In other words, trust wallet is not a secure, private and/or trustworthy wallet, so you are retarded to be promoting it as if it were a true wallet.

You can look at open source bitcoin wallets, here:  https://thebitcoinhole.com/software-wallets

[alankasman]

...

Bitcoin investment is worth giving a trial, and in as much as I would advise people to invest in it I will also let them know that it is wrong to invest with loan money because Bitcoin investment is not a Short term investment or scheme that you will invest today and start expecting reward in a week or two. In bitcoin investment you have to exercise patient before you could get a better return even though there's no guarantee about the return but one thing I believe is that whoever that held his or her bitcoin for Long probably 5-10 years or more will not regret ever holding Bitcoin for Long term.

I think it's worth trying Bitcoin investment, but if the investment capital is borrowed, this is certainly a serious mistake. As you mentioned, Bitcoin investment isn't just for a short period of time, but rather for the long term. Therefore, investing with borrowed capital from various parties is not advisable.

Not many people dare to invest in Bitcoin with borrowed capital, especially since the returns aren't guaranteed to repay the loan. Just like a businessman who cannot be sure whether their sales will increase in the next few months or not, this example can be a lesson for us not to always make mistakes in investing in Bitcoin because investing in Bitcoin requires at least 5-10 years to be sure of the results we get from investing.

[Muba20]

That's what we are talking about here, investing only from the discretionary income. No one is saying, "take a loan and invest everything in Bitcoin". That would be too risky. Bitcoin is a great thing, investment-wise, but we can make even the greatest thing bad if we use it unwisely. If you think you might need the money in the near future — don’t invest it in Bitcoin, don’t invest it in anything.

Bitcoin investment is worth giving a trial, and in as much as I would advise people to invest in it I will also let them know that it is wrong to invest with loan money because Bitcoin investment is not a Short term investment or scheme that you will invest today and start expecting reward in a week or two. In bitcoin investment you have to exercise patient before you could get a better return even though there's no guarantee about the return but one thing I believe is that whoever that held his or her bitcoin for Long probably 5-10 years or more will not regret ever holding Bitcoin for Long term.

Investing with borrowed money is risky. In terms of investment, there is usually a simple advice that it is better to invest with money that is possible to lose. Every investor should think before investing that Bitcoin is a volatile currency and after investing here, the value of the invested assets can quickly lose value. For an investor who expects quick profits with short-term loans, the investment can cause more losses. On the one hand, market volatility, on the other hand, the high interest rate of the loan puts pressure on the investor from both financial and mental aspects.

If you invest in Bitcoin with a plan that only profits will be made, the possibility of losses will increase. It is better to avoid the idea that you will make a profit by investing again if you have made a lot of profits by investing in Bitcoin in the past. This does not guarantee profit, but long-term investors have a higher chance of profit. You should only invest with your own money that is not a problem for the investor even if you lose it.

[Cossyblack]

Small investors cannot make good profits from Bitcoin in any other way than buying and holding Bitcoin. Because good profits in a short time never come from small investments. Just as a good profit can be generated from a large investment in a short time, there can also be large losses. When an investor makes small investments but continues his investment by following DCA, he can gradually accumulate a good amount of Bitcoin. In this case, even big investors sometimes cannot make the same profits because if the big investment is not held for a long time, then they cannot retain their profits. To get good profits from a small investment in Bitcoin or any big investment, there is no alternative to holding it for a long time.

You make a good point but where I disagree with you is where you mentioned that if you invest small and hold it for a long time,it will yield huge profits. The size of your bitcoin investment and the duration you hold determines the size of the profits your investments will generate. For example,two friends invested in bitcoin at the same time and they agreed to hold it for two cycles, the first person invested $50 and other person invested $500,both using lump sum. What will determine their profits in the next two cycles is the size of their discretionary income they invested. The first guy who invested $50 will get small profits because of the amount he invested but his friend who invested the $500 will make much higher profits than him.. The point I'm trying to make through this example is that,the size of your stash is what determine the size of your profits in the long term, that is, if you invest a small discretionary income then don't expect a huge profits tomorrow, bitcoin investment don't work that way.