Can small investors actually make good profit with bitcoin ?

[Sammysmart001]

Ever heard of emergency fund/savings? It is what is used in scenarios Ike this, so you don’t have to sell your bitcoin every time you face a financial problem. See why it is advisable for folks to priotize building their backup funds alongside accumulating bitcoin.

This are main reasons why allot of investors do fail, in the sense that they get so caught up by trying to stack up sats that they ignore their real life financial safety net. In the aspect we’re you don’t have any emergency funds being it cash or fiat or stable coins, your own bitcoin has become your emergency funds.

And we all know how this life works, emergencies seems to always happen when market is dumping. Im a situation were maybe your car broke down or health and your only hope is your money in Bitcoin, in such situation you will be force to sell out your coin at a huge loss.

A 3 to 6 month cash cushion should be build at lest before anyone should decide on DCAing into Bitcoin. Once you have sort this out you will see that you can be able to invest your extra money with a total peace of mind. Be at you own peace that nothing can force you to liquidate your coin at the very wrong time.

[L E G E N D A R Y]

Exactly emergency funds are what we take advantage of and use in situations like this and not going back to our investment to sell some and take care of our financial situation. Before investing in bitcoin, it always a positive idea not put everything into accumulating of bitcoin alone instead divide our discretionary to back up funds if possible so at least we can have the emergency funds and also the reserve funds too so incase situations like this arise unannounced then it won’t affect our investment and we will get to settle the situation with our emergency funds without any further loss. And also we shouldn’t take building our backup funds alongside our investments for granted because that is a huge priority.

The problem with some investors is that they focus way too much on accumulating Bitcoin to the point that they end up forgetting to prepare themselves for unexpected expenses. Emergencies and unexpected financial situations may arise at anytime and these things are inevitable, so failing to prepare for them simply means you’re prepared go through financial strain and stress whenever these things pops up. An Emergency Fund protects an investor from you from being forced to liquidate or sell part of your assets prematurely whenever the urgency for financial need arises. If anyone wants to really invest for the long term then they must prioritize building their investment and financial backup together.

[BluebloodCXVI]

When investing in Bitcoin, one must be cautious because there are risks involved and there is no guaranty of a profit. Because of this, anyone considering investing in Bitcoin with the hope of making a guarantyd profit by observing the profits of others will undoubtedly be let down. Because those who invest in Bitcoin with the goal of making a guarantyd profit are unable to withstand market volatility, they frequently lose money as a result of making poor decisions.

However, those who invest with careful consideration of risk, volatility, and their own capabilities are able to sustain their investment even in the face of market volatility and stay steady in their pursuit of their objectives. Therefore, you must know what to do. If you enter Bitcoin in the wrong way in the hopes of making large profits quickly, even a small price decline can force many people to make poor decisions that will undoubtedly result in losses. Therefore, rather than viewing Bitcoin as a way to become wealthy overnight, hold it properly by thinking of it as a long-term asset, as it has more potential in the long run.

I think you’ve made some good points concerning risk management and all, but i would have to push back a bit on something; you’re implying that if a person has the right mindset and treats bitcoin as a long term asset, then that alone is enough to help the person navigate through market volatility, i find that to be incorrect to an extent.
A guy can have understanding about the risks associated with bitcoin and yet still be forced to sell at a loss maybe due to an emergency or probably a sudden change in his financial circumstances. And that is why IMO I believe that financial stability and the ability to invest without compromising your essential expenses matter just as much as having the right investment mindset.

Let me also point out to you that the expectation of profit from bitcoin investment doesn’t necessarily mean that the person expects guaranteed profit or cannot handle volatility, there’s a difference between between investing with the expectation of a potential return and assuming that a profit is certain, so let’s make that clear.

[Gravitypull$]

A 3 to 6 month cash cushion should be build at lest before anyone should decide on DCAing into Bitcoin. Once you have sort this out you will see that you can be able to invest your extra money with a total peace of mind. Be at you own peace that nothing can force you to liquidate your coin at the very wrong time.

You don't put emergency funds prior to your bitcoin investment and I think piling up cash up to three months of your monthly expenses for your emergency funds first before starting your bitcoin investment is not the best way to go about investing into bitcoin in the beginning because fiat depreciates overtime and you are still a no coiner. It can take a low income earner to build his emergency funds of three months of his monthly expenses a year or more and you want him to just sit down piling up cash for emergency that may come or not.

The best way is to start your bitcoin investment right away provided your discretionary income is available and build your emergency funds simultaneously, with your bitcoin investment in the same pace because you must strike a balance between your bitcoin investment and emergency funds in the beginning since, you don't have any backup funds on ground that can act as part of your emergency funds at that moment. Bitcoin is a long term asset and a store of value which makes sense to buy immediately, to preserve the value of your funds because bitcoin is an hedge to inflation.

[arwin100]

Anyone who thinks Bitcoin will make them rich quick is mistaken, because we are talking about serious long-term investing. And this is not a matter of 'overnight' or even a year, but at least four years. JJG was absolutely right to describe a timeframe of even ten years, and believe me, as soon as you start investing by buying Bitcoin in parts (amounts that fit your pre-calculated budget), time starts flying by. However, it is important to focus not on the time, but on ensuring that everything keeps going according to your accumulation plan - so that you don't waver internally. But I am sure that anyone who starts investing via DCA won't be waking up anxiously at night to check TradingView the way traders do.

I don't have problems with people that think they can make quick money from Bitcoin, yes you can do that but first, do you have the money to make that quick money?
I mean, with $100k position you can buy Bitcoin at $82k and flip the profit at $87k and many times but are you ready to risk that amount or do you even have the money to open that kind of position. It's always we want to make the money but they don't even have the means to make the money.

If goy want to go far in any investment, relax your head and go for long term, most of the people that you see are onto trading are scalpers and day traders but they invest their time and energy into learning complex of the market. They are all into trading and even at that, they make loss as well but it's you that knows little about trading that want to make quick profit from Bitcoin, that's unrealistic wealth you are looking around.

Doing quick flips may really sounds so good for people, but what people missing out is they need to have big capitals on this to feel to profit and also a iron balls.

Actually its not easy to gain on possible figures you have said. Since you will only feel that you are earning if maybe you are using $100k or maybe more bigger than than. Lots of people don't own such amount and not all people have that can afford to lose that funds.

So best to erase this kind of idea, if they want sustainable investment. Much better for them to erase that thinking to do trade and better focus on DCA.

[Oshio-man]

Profit is profit no matter how small or huge it is, you don't have to measure your profit as a small investor with those that invested huge amounts.

This is what some traders don't know before making some decision in bitcoin trading,  how can you use small amount of dollars to trade and start expecting huge amount of income, there are some income you will earn from your trading you will not be happy with the income because you used the small amount to trade, which is the reason it will not bring out huge income you wish, loss is not the wish of any trader but sometimes it happen for some traders to learn to improve but it doesn't mean you should be comfortable in using small amount of capital to earn huge income from bitcoin trading.

[Baki202]

Profit is profit no matter how small or huge it is, you don't have to measure your profit as a small investor with those that invested huge amounts.

This is what some traders don't know before making some decision in bitcoin trading,  how can you use small amount of dollars to trade and start expecting huge amount of income, there are some income you will earn from your trading you will not be happy with the income because you used the small amount to trade, which is the reason it will not bring out huge income you wish, loss is not the wish of any trader but sometimes it happen for some traders to learn to improve but it doesn't mean you should be comfortable in using small amount of capital to earn huge income from bitcoin trading.

You can go in small and expect something huge. It does not work that way, and that is why we need to be ready so that we don't make the same mistake of wanting to make more profits, because the only way things like this can happen is when you are going in hard, that is, with a very high amount. We have to understand the fact that it will be much better than what we are doing now, and for you to go in with a huge entry, you have to be a pro already because it will be much easier.

And I don't even see anything wrong with starting small because it is just as if you are investing what you can afford to lose, and only that way can you reduce the risk of everything because trading comes with a lot of risk, and the earlier you reduce the risk, the better, so that in the process you won't end up losing more money because trading involves a lot of risk, so avoiding losing so much money should just be the best.

[Loyang]

You can go in small and expect something huge. It does not work that way, and that is why we need to be ready so that we don't make the same mistake of wanting to make more profits, because the only way things like this can happen is when you are going in hard, that is, with a very high amount. We have to understand the fact that it will be much better than what we are doing now, and for you to go in with a huge entry, you have to be a pro already because it will be much easier.

And I don't even see anything wrong with starting small because it is just as if you are investing what you can afford to lose, and only that way can you reduce the risk of everything because trading comes with a lot of risk, and the earlier you reduce the risk, the better, so that in the process you won't end up losing more money because trading involves a lot of risk, so avoiding losing so much money should just be the best.

We are discussing long-term investments in this thread, so I hope you will not confuse anyone by talking about short-term investments or trading later. Because when you discuss short-term investments or trading, many new investors may be attracted towards trading after reading your comment and may move towards risky decisions like trading without knowing about the risks of trading etc.

Trading is presented everywhere in such a way that every person can earn millions of dollars from the day they start trading, so a new person can easily be attracted towards trading. So always talk about long-term investments and save everyone from getting confused.

[PhilosopherKing]

Profit is profit no matter how small or huge it is, you don't have to measure your profit as a small investor with those that invested huge amounts.

This is what some traders don't know before making some decision in bitcoin trading,  how can you use small amount of dollars to trade and start expecting huge amount of income, there are some income you will earn from your trading you will not be happy with the income because you used the small amount to trade, which is the reason it will not bring out huge income you wish, loss is not the wish of any trader but sometimes it happen for some traders to learn to improve but it doesn't mean you should be comfortable in using small amount of capital to earn huge income from bitcoin trading.

Bruh, quiit promoting trading here. And what the hell make you think that trading will bring big results just because you used large amount. Trading has a lot of risk, you could even use that large amount and still not make a single profit. Funny right? that is how trading can be. But this thing can be avoided if the person just DCa using what they call their discretionary income.

Imo, it is not as if investment is guaranteed for profit, it is isn't because the price still get to go down real hard even when you ongoingly invest. But it is not as risky as trading, because while you are investing the price will still always bounce back up when the bull market comes .

The thing with trading is that it reduces your bitcoin stash through repeated selling and bad timing. You can even see yourself selling and then buying yourself fewer bitcoin that you owned because the market wasn't timed very well. But DCa person don't have to care about all that, they just get started and ongoingly keep going. Nice huh?

[laijsica]

I have been thinking lately about how investing in bitcoin is actually a great idea but also it can be really hard to make profit off bitcoin if you're a small Investor
Imagine this:
If bitcoin is at $64k and me as a small investor bought with $1k, for me to make 100% profit bitcoin will have to hit $128k, that is still feasible
But if I'm hoping to make a 200% profit on my investment bitcoin price will have to get to $256k, how achievable is that ? And if it's achievable how long is it going to take

Which brings me back to my question
Can small investors actually make good profit with bitcoin?

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

Yes, it is not easy to make a profit, and it is not difficult for patient small investors. If you can prepare and implement all the elements required for long-term investment in Bitcoin, it will not be difficult to make a profit. Focus on holding Bitcoin during the Bitcoin investment journey, for this you will need discretionary income.

In the initial stage of investment, you will need discretionary income, use the DCA method regularly, regardless of the level of Bitcoin's price. Okay, you, the retail investor, deposit Bitcoin every week according to your financial capacity in the DCA method. If you can follow this method in the long term (4-10 years), you can get a decent Bitcoin holding.

Your objective will be to accumulate a store of value (Bitcoin) for the future. As the size of this holding increases, your chances of getting high profits will also increase. This means that if a small Bitcoin investor can stay on the Bitcoin journey for the long term, the chances of making a profit increase significantly.

[Big Dirams]

Profit is profit no matter how small or huge it is, you don't have to measure your profit as a small investor with those that invested huge amounts.

This is what some traders don't know before making some decision in bitcoin trading,  how can you use small amount of dollars to trade and start expecting huge amount of income, there are some income you will earn from your trading you will not be happy with the income because you used the small amount to trade, which is the reason it will not bring out huge income you wish, loss is not the wish of any trader but sometimes it happen for some traders to learn to improve but it doesn't mean you should be comfortable in using small amount of capital to earn huge income from bitcoin trading.

Losses in trading are inevitable and we can’t escape it in any way because it will hunt us down no matter how knowledgeable we think we are. Even professional traders faces losses because it part of the journey, but the mistake we can make as a trader is when we face losses and we don’t even bothered to check or look for what triggers the losses and what we did wrong to caused the losses then we won’t improve and see progress quickly because either now or later we will witness same situations so if we find solutions for it those early time then we will find a way around it but when we don’t find solutions for it then we will keep recycling around that cycle with losses.