Can small investors actually make good profit with bitcoin ?

[Loyang]

I don't think folks should put themselves under unnecessary pressure by taking loan just because they want to take advantage of dip. A dip should only be an opportunity if you already have spare cash available for it. But if you don't have at that moment, then leave it.

Just because you see people investing during dip doesn’t mean you should look for all possible ways to invest also. You don’t have to take loan which you believe will affect you because of investment, make sure you don’t depend on your investment to pay back the loan, because if you don’t have any means to pay your loan, then just stay away from loan. After investing, and you think bitcoin price is going to start pumping, don’t be surprise that bitcoin price will continue dumping, and might not bounce back before when you will be paying back your loan.

I don’t always encourage people taking loan just because they want to invest in bitcoin, always make use of your money, and it should be any amount which you can afford to lose, and any amount which you won’t be using within a short period of time. Some people that take loan to invest might end up regretting, because things might not go as planned.

Well as long as the person’s loan repayment plan is not dependent on bitcoin’s price going up and they have a reliable income source or some existing funds somewhere to use in paying back the loan, then it won’t necessarily be a bad idea to take the loan IMO.
Although the person still has to come to terms with the fact that they are taking a leverage and they must understand the potential loss and borrowing cost attached to taking loans.

If the person can keep their position size to around 5–10% of their net worth, i think that is a pretty practical way to contain any damage that may arise; even an 80% Bitcoin drawdown would then translate into only a 4–8% hit to their total net worth, which i believe IMO most people with stable cash flow can easily absorb without derailing their broader financial plan.

If you already have some money then why would you take a loan and pay interest on the loan. Not everything always goes according to our plan, if after taking a loan our source of income goes away then we will definitely not be able to repay the loan or we will have to sell our holdings or sell our assets to repay the loan. Investing with debt does not seem to me to be the right decision and it is a very risky decision in my opinion.

We should always invest the amount of money that we can afford to lose, which is our discretionary income. A person who invests with debt is definitely investing outside of his discretionary income, which is not a right decision at all. A good decision for a person is to continue to buy as aggressively as possible from his discretionary income instead of taking a loan

[ejikeme24]

If you already have some money then why would you take a loan and pay interest on the loan. Not everything always goes according to our plan, if after taking a loan our source of income goes away then we will definitely not be able to repay the loan or we will have to sell our holdings or sell our assets to repay the loan. Investing with debt does not seem to me to be the right decision and it is a very risky decision in my opinion.

We should always invest the amount of money that we can afford to lose, which is our discretionary income. A person who invests with debt is definitely investing outside of his discretionary income, which is not a right decision at all. A good decision for a person is to continue to buy as aggressively as possible from his discretionary income instead of taking a loan

I agree with you to some extent, especially on this aspect where you said what if our income goes away. You know this is also another important thing we need to look into especially those who are not self employed still working under someone, this set of people need to be careful while make decision in regards to thier Bitcoin investment, they need to examine themselves very well knowing fully well that there's no 100% guarantee if their job would last for a longer time or not. If there's someone that need to take out loan to invest with the hope of paying back that should be those who are self employed because there own case seems different from that of a guy that is working under someone, yet there's risk in it because their business can fold at anytime maybe even before the due date. So for that I can't possibly advice anyone to invest in bitcoin using loan money.

[PhilosopherKing]

I agree with you to some extent, especially on this aspect where you said what if our income goes away. You know this is also another important thing we need to look into especially those who are not self employed still working under someone, this set of people need to be careful while make decision in regards to thier Bitcoin investment, they need to examine themselves very well knowing fully well that there's no 100% guarantee if their job would last for a longer time or not. If there's someone that need to take out loan to invest with the hope of paying back that should be those who are self employed because there own case seems different from that of a guy that is working under someone, yet there's risk in it because their business can fold at anytime maybe even before the due date. So for that I can't possibly advice anyone to invest in bitcoin using loan money.

Self employment cannot even protect your ass from the dangers of investing with loans. So don't act like the self employed that take loan to invest are better off.You can be self employed and something still happens to your business.Foe example, you could loses some of your customer to competitor, or sales becomes very dull unlike before or you can even face a very serious crises with your business.

And when you take a loan and you have an agreement to pay it back in a particular time,you are expected to pay it back, no one will even want to give a fuck if business is booming or doing well. And if you take a loan and suddenly the business that was doing well the past few months just stop doing well and when the usual money you were getting dosen't come as before, then it will be difficult to repay that loan.

Loan can force you to have sleepless night, endless thinking, so why bother go through all this stress when you can just invest with your discretionary income huh?

[jossiel]

These are things I don't really encourage people to do because whenever they involved themselves into that they automatically put themselves in a tight corner because they believe that when they take out the loan they could be able to double their investments within a short period of space, but without knowing that if things doesn't go as they planned then they began to pay loan they didn't expect it would go that way.
Of course you are right, anyone who must investment should invest with their hand earned money, and they should also invest with what that would never have effect on their head or mind.

I've seen people who have been determined to take loans just for them to buy Bitcoin. I discouraged them from doing so.

Based on my personal experience, if you can't afford to invest you should not think like that. Just try to save some money first before buying.

The volatility might discourage these investors from having it if the money they used is from debt. And a worse situation can come that what they're holding might end up being sold at a loss when the market is having a correction.

[Tetu100]

Self employment cannot even protect your ass from the dangers of investing with loans. So don't act like the self employed that take loan to invest are better off.You can be self employed and something still happens to your business.Foe example, you could loses some of your customer to competitor, or sales becomes very dull unlike before or you can even face a very serious crises with your business.

And when you take a loan and you have an agreement to pay it back in a particular time,you are expected to pay it back, no one will even want to give a fuck if business is booming or doing well. And if you take a loan and suddenly the business that was doing well the past few months just stop doing well and when the usual money you were getting dosen't come as before, then it will be difficult to repay that loan.

Loan can force you to have sleepless night, endless thinking, so why bother go through all this stress when you can just invest with your discretionary income huh?

That is why loan are not something we should totally rely on especially when investing in bitcoin. It can give you some unusual pressure that you wouldn't be able to withstand. Therefore, our discretionary funds remain the right funds to invest from that can give you peace of mind in the long run.

Again, loan can only be meaningful when maybe you got no means of raising a discretionary funds at the moment and probably you are hoping for something bigger ahead. Maybe, because I still can't advice someone. You can kick-start from a loan funds, then repay from other means of income because it wouldn't be proper aiming to pay back the loan from your investment holdings. But then again, it's make sense figuring out a legitimate source of income that can help us carve out our discretionary funds to Kickstart with. Hence this is even more saver and sustainable.

[ChocolateBitcoinK]

Bitcoin may well be amongst the best, if not the best, place for normal people to put money, even while it is not guaranteed to end in "profits."

Ya you are right, bitcoin is worth taking the risk as a normal person it also worth investing into it as one of the best asset in the world while understanding that nothing is guarantee in the market is what that can make you bear what ever happened at the end of your investment.

Bitcoin is an investment that doesn't guarantee us profit and is ought to be invested with our discretionary income that is money we can actually afford to lose and hold for long rather than money meant for essential need and then accept what ever the outcome may be at the end of your bitcoin over accumulation phase.

Irrespective of how motivated you are about Bitcoin, always ensure that you manage your risk properly so you don't take irrational risk that will land you in depression. Invest amount that will not put you in trouble or depression when it is lost and ensure that whatever you are investing in Bitcoin is something you can leave in Bitcoin for several years because you never know when the investment will be in profits. Also try and manage your expectations because Bitcoin is not going to make you rich overnight, it is not a ponzi scheme or one of those shitcoins out there, so you must be willing to give the investment enough time to grow only then will you have hopes of the benefits in the future.

In the case of Bitcoin investment, one must be careful about the risks, the investment is not risk-free, and at the same time it does not give any possibility of making a sure profit. And for that reason, if someone is thinking of investing in Bitcoin with the intention of making a sure profit by seeing the profit of others, then he will definitely be disappointed. Because those who invest in Bitcoin with the intention of making a sure profit cannot tolerate the volatility of the market, and then due to this volatility they often fall into losses through wrong decisions.

But those who invest considering the risk, considering the volatility and considering their own capabilities very well, they can easily maintain their investment even in the midst of market volatility and remain stable towards their goals. And so you need to understand the right thing, if you enter Bitcoin in the wrong way hoping for big profits quickly, then even a slight drop in price can force many to make wrong decisions which will definitely cause losses, so instead of seeing Bitcoin as a means of getting rich overnight, actually hold it properly by considering Bitcoin as a long-term asset, Bitcoin has more potential in the long term.

[Showlove01]

You’ve said it all Mate. The problem about timing the market is that you never really get to accurately predict the next position of the market. Many times, what was predicted to be the next DIP ended up being anything other than a dip. The market is naturally volatile and unpredictable, which means attempting to predict it or targeting to make a move might just end up being another mistake. Besides, what’s the point of targeting a dip if you’re actually going to hold for a long term and still end up being profitable at the end of the day?

You are actually correct but from the question op asked as a title of this thread, I do not really get what he meant by small investors, I don't really know if he or she meant short term investors or folks who don't have huge amount of money to invest in Bitcoin. But, if the question is about people who do not have huge amount of money in their discretionary, sure they will make a good profit if they have the long term mindset and most importantly if they are consistent in their accumulation but if it is about short term investors I am not sure about that.

[L E G E N D A R Y]

You are actually correct but from the question op asked as a title of this thread, I do not really get what he meant by small investors, I don't really know if he or she meant short term investors or folks who don't have huge amount of money to invest in Bitcoin. But, if the question is about people who do not have huge amount of money in their discretionary, sure they will make a good profit if they have the long term mindset and most importantly if they are consistent in their accumulation but if it is about short term investors I am not sure about that.

The issue for me here is what exactly the OP meant by small investors. If what he means are those who do not have a huge amount of discretionary income to invest, then I believe they can indeed benefit from Bitcoin, but that’s only if they remain consistent in their accumulation and also maintain a long term mindset.

[hafiztalha]

We should discourage people from taking loans and investing in trading Bitcoin. Because when we borrow money, it's extra sense of responsibility and Bitcoin is very volatile, there is no fixed profit in this space. If we lose, it's our own money but if it's borrowed one then the pressure of recovering that money and returning it to owner will pressure our decision capabilities. Maybe after drop it will recover soon but with a pressurized mindset, we have already made the wrong decision. We should save some capital before starting to invest it's better than taking loan. These are not just my words or sayings; it is reality.

[samadam007]

loan can only be meaningful when maybe you got no means of raising a discretionary funds at the moment and probably you are hoping for something bigger ahead. Maybe, because I still can't advice someone. You can kick-start from a loan funds, then repay from other means of income because it wouldn't be proper aiming to pay back the loan from your investment holdings. But then again, it's make sense figuring out a legitimate source of income that can help us carve out our discretionary funds to Kickstart with. Hence this is even more saver and sustainable.

Collecting loan to invest with the hope of paying back because you’re expecting money is even worse. What if it doesn’t come as expected? The loan still has to be repaid. That’s how you put yourself in serious debt or be forced to sell the little portfolio you’re trying to build.

Personally I am against folks borrowing to invest. If you don’t have any discretionary income, just look for ways to improve your income, no pressure. But if you’re hell bent on taking loan. Make sure you have a very reliable source like businesses or something you’re sure of.

[Alphakilo]

loan can only be meaningful when maybe you got no means of raising a discretionary funds at the moment and probably you are hoping for something bigger ahead. Maybe, because I still can't advice someone. You can kick-start from a loan funds, then repay from other means of income because it wouldn't be proper aiming to pay back the loan from your investment holdings. But then again, it's make sense figuring out a legitimate source of income that can help us carve out our discretionary funds to Kickstart with. Hence this is even more saver and sustainable.

Collecting loan to invest with the hope of paying back because you’re expecting money is even worse. What if it doesn’t come as expected? The loan still has to be repaid. That’s how you put yourself in serious debt or be forced to sell the little portfolio you’re trying to build.

Personally I am against folks borrowing to invest. If you don’t have any discretionary income, just look for ways to improve your income, no pressure. But if you’re hell bent on taking loan. Make sure you have a very reliable source like businesses or something you’re sure of.

Taking out loans goes both ways. One is when people take it to invest in Bitcoin and the other is when people take it because they don't want to liquidate their Bitcoin asset yet because of a very delicate and pressing need.
So in both cases, I think that the decision is based on knowing the role that Bitcoin investment serves for you as the investor because this would define the length you are willing to go to use Bitcoin to serve your purpose or agenda.
When investors take loans to invest in Bitcoin, it has to be huge and be held for longer as the price rises before profit is made and in a case of emergency where a loan is needed to avoid liquidation of Bitcoin asset, it has to be smaller that it can be easier to pay back and sort the need and avoid liquidation of Bitcoin asset when the price is unfavourably a loss.

[o48o]

Collecting loan to invest with the hope of paying back because you’re expecting money is even worse. What if it doesn’t come as expected? The loan still has to be repaid. That’s how you put yourself in serious debt or be forced to sell the little portfolio you’re trying to build.

Personally I am against folks borrowing to invest. If you don’t have any discretionary income, just look for ways to improve your income, no pressure. But if you’re hell bent on taking loan. Make sure you have a very reliable source like businesses or something you’re sure of.

If i knew about bitcoin when i was still at school, i might have invested with a student loan back in time because that's interest free. And was bad with money and used the loan poorly anyway. I am not saying it would have been a good idea, because i couldn't have known if bitcoin tanks or not. Like we still can't. It's smart only in hindsight.

With normal bank loan that has an interest rate i wouldn't invest as a principle. Even if i was sure that bitcoin would rise 100% in a year. Because it would just prove to me and everyone that i am irresponsible with money. I consider investing to cryptos similar to gambling. It doesn't really matter if it's bitcoin or something more fluctuating.

[Emjay24]

If you already have some money then why would you take a loan and pay interest on the loan. Not everything always goes according to our plan, if after taking a loan our source of income goes away then we will definitely not be able to repay the loan or we will have to sell our holdings or sell our assets to repay the loan. Investing with debt does not seem to me to be the right decision and it is a very risky decision in my opinion.

We're talking about small investors here of which their cashflow may not be strong enough to be producing discretionary income consistently, so taking out a loan and paying plus the interests might be some sort of a burden on them and that is why I don't actually think its ideal for small investors. It is best to invest strictly from their means and anytime discretionary income is present. The goal is for bitcoin investment to be as stress free as possible so that the investment ca be sustained for longer.

[Pressurizedem]

Small investors  can also make money in Bitcoin, it all depends on your mindset and the way you approach the market.  So many large scale investors fail most times because they feel over confidence about the money they are investing, therefore end up failing or losing money as a result. On the other hand, small investors who have little experience only needs a mentor or someone who has been into the business to be able to direct them into investing in the right project and the perfect time to invest.

It is always good to invest small amounts earlier or for a start to avoid had I known in the future because as we all know that Bitcoin investment can sometimes be something very dynamic and risky, therefore one has to apply sense in dealing with it so your money will not thrown into the water.

[Primark]

Collecting loan to invest with the hope of paying back because you’re expecting money is even worse. What if it doesn’t come as expected? The loan still has to be repaid. That’s how you put yourself in serious debt or be forced to sell the little portfolio you’re trying to build.

Personally I am against folks borrowing to invest. If you don’t have any discretionary income, just look for ways to improve your income, no pressure. But if you’re hell bent on taking loan. Make sure you have a very reliable source like businesses or something you’re sure of.

If i knew about bitcoin when i was still at school, i might have invested with a student loan back in time because that's interest free. And was bad with money and used the loan poorly anyway. I am not saying it would have been a good idea, because i couldn't have known if bitcoin tanks or not. Like we still can't. It's smart only in hindsight.

With normal bank loan that has an interest rate i wouldn't invest as a principle. Even if i was sure that bitcoin would rise 100% in a year. Because it would just prove to me and everyone that i am irresponsible with money.

You are right about not investing in loans from banks. But it may not be realistic to consider it a means of buying Bitcoin when student loans become interest-free later. Student loans are purpose-based money, meaning that the loan is given for a purpose, which is to cover education or living expenses. Now, if you invest that purpose-based money in a volatile asset like Bitcoin, then when the market goes down in a few weeks or months, you will not only see a loss, but you may also be stressed about your necessary expenses.

I consider investing to cryptos similar to gambling. It doesn't really matter if it's bitcoin or something more fluctuating.

I can't tell you about other coins. But if someone slowly accumulates Bitcoin from their discretionary income, pays attention to their emergency fund, and has the mindset to hold it for the long term, it never becomes like gambling. Rather, there are no limits to gambling, and most gamblers have no control.

[o48o]

You are right about not investing in loans from banks. But it may not be realistic to consider it a means of buying Bitcoin when student loans become interest-free later. Student loans are purpose-based money, meaning that the loan is given for a purpose, which is to cover education or living expenses.
-cut-

Well put. If i recall correctly, they prohibit in the loan contract for it to be used as an investment, but only the for living and studying expenses.

I would probably have ignored this contract when i was younger. And if i would have made myself a millionaire with that investing, bank would have been asking how i funded my investment. So i might have even gotten charged for a fraud in the end.

[JoyMarsha]

You are actually correct but from the question op asked as a title of this thread, I do not really get what he meant by small investors, I don't really know if he or she meant short term investors or folks who don't have huge amount of money to invest in Bitcoin. But, if the question is about people who do not have huge amount of money in their discretionary, sure they will make a good profit if they have the long term mindset and most importantly if they are consistent in their accumulation but if it is about short term investors I am not sure about that.

The issue for me here is what exactly the OP meant by small investors. If what he means are those who do not have a huge amount of discretionary income to invest, then I believe they can indeed benefit from Bitcoin, but that’s only if they remain consistent in their accumulation and also maintain a long term mindset.

The truth of the matter is that many investors who are coming into the crypto space have a short term mindset on Bitcoin. They can't wait that long for the little money they invest in Bitcoin to give them many profits. That's why they choose to invest in higher-risk coins (altcoins), thinking that will give them the reasonable profits they desire, instead of Bitcoin whose future price is unknown to everyone.

[abaeze]

The truth of the matter is that many investors who are coming into the crypto space have a short term mindset on Bitcoin. They can't wait that long for the little money they invest in Bitcoin to give them many profits. That's why they choose to invest in higher-risk coins (altcoins), thinking that will give them the reasonable profits they desire, instead of Bitcoin whose future price is unknown to everyone.

Many people only think about how much profit they will make, but Bitcoin and altcoins are not the same thing. People want fast high returns from small capital, so they choose altcoins with higher risk instead of Bitcoin's relatively slow and uncertain long-term growth. But no one wants to accept the fact that high risk means that the desired profit is not guaranteed. An altcoin can grow quickly, and at the same time lose 70–90% or more of its value very quickly, or even disappear from the market, but Bitcoin never disappears or becomes 0. Although no one knows its future price for sure but that uncertainty is a hundred times greater in the case of altcoins.