What are things to consider before someone go into investment?

[Tetu100]

It's better he finds something else like buying and selling of life stock to invest in, because that is the kind of investment that will Warrant fast money for him.

That is the category he needs at the moment since what he want is something that can give him fast return to sort out his family needs. Because from his first question (how am I supposed to be surviving with my family for that long) I noticed he's not the type that can invest in bitcoin patiently.

I also think that if such person invest in Bitcoin, financial pressure will eventually make him to withdraw from the investment someday even if the value of what he invested has fallen.

From the look of things, he has no tangible thing at hand so there is every tendency that even if he invest in bitcoin, there is higher chances of him milking from the investment deal  when real problems come since there's no real stream of income. Hence, it's important he sort out himself first before thinking of bitcoin investment.

Also for someone to likely be successful in Bitcoin investment, that person must have the mindset, put it at the back of his mind and expect anything to happen because investment success is not always guaranteed. And with what I understand about that your friend, I doubt for him to have such mindset or if he can handle loss well.

It's written all over him that he can not even stand the tension of going through lost, I pity for the op because that your friend wouldn't mind to hold you down your trouser if anything mistakenly happens to his money.  It wouldn't be easy at all.

I think the best thing to do is to tell him all the factors and facts surrounding Bitcoin investment, and most importantly the fact that success is not 100% guaranteed, and even if he is ok with it, you should recommend and share some key information about Bitcoin to investment for him to study and have idea on what and how Bitcoin work/is.

That should your guard. Tell him more of the disadvantages than what he stands to gain, make him understand every single thing concerning it. And most importantly, ensure he make the final decision by himself and that will be more better.

[Gragebox]

The way you speak of Bitcoin as if you already have an established investment platform that generate you income and you are making your friends to feel as if you are dealing with a lot of profits, you should also tell us how much you have made from your Bitcoin investment so far, because based on experience, treating Bitcoin as a sole investment to depend on can be a bug fallacy that most people don't care to actually tell the truth about they experience with the investment or holdings.
Is good that you mentioned some risks that come along with focusing on Bitcoin as a business instead of treating it as a risky alternative investment.

You shouldn't claim you will make money or that you will make money in bitcoin. Investment outcomes are based on entry price, holding time, size of the position, and individual risk management. Everybody can buy bitcoin and walk away with entirely different outcomes, stating bitcoin is profitable is an oversimplification.

I think there is a vast difference of believing in bitcoin, and relying on bitcoin as your means of income.

People may be very bullish on the long term prospects, but that doesn't mean you should put all of your savings into bitcoin or quit your job. You can see significant price drops in bitcoin in a single day, and there is no guarantee you will be profitable within a given amount of time. It is more beneficial to learn rather than compare profit figures with investors of different experience levels. Being comfortable with volatility, position sizes, security, and risk tolerances is more helpful than hearing about the amounts of money certain investors have made.

Another important step is diversification. You are not risking everything by putting all of your holdings into bitcoin, but your financial security shouldn't be dependent on one asset. Having bitcoin as part of your allocations can be beneficial, but if your entire livelihood depends on the price holding up, it can lead to unnecessary stress in a falling market. A clear picture of not only gains but also losses can help guide new investors on their journey with bitcoin.

[MainIbem]

Anyone who's interested in an investment like Bitcoin must first have a job so they can sustain their discretionary income long enough to keep building the investment, another thing is conviction, the future of Bitcoin is unknown but with a strong belief that it would keep being valueable then anyone with conviction would keep up with long term holding regardless of how the market fluctuates, another thing that's very important is patience, holding longer requires lots of it.

[Showlove01]

Anyone who's interested in an investment like Bitcoin must first have a job so they can sustain their discretionary income long enough to keep building the investment, another thing is conviction, the future of Bitcoin is unknown but with a strong belief that it would keep being valueable then anyone with conviction would keep up with long term holding regardless of how the market fluctuates, another thing that's very important is patience, holding longer requires lots of it.

You have actually said it all, I don't think it is possible for someone to start Bitcoin investment without a source of income in fact even business or investment outside Bitcoin investment requires a source of income but it must not be stable but as long as one can get a discrestionary income after some period of time then it is okay but having a stable income will be a great advantage for someone who knows what they are doing in Bitcoin investment. And having the long term mindset is very important because it will help an investor not to panic because of sudden price drop.

[EarnOnVictor]

-snip-
If it was you what would you do at this point, allow him to invest or what?

Is your friend not an adult? So why not?

You see, some people have to learn by experience, and no amount of talking would change them. It's fun to sit-back and relax for them to come back and say they regretted it, that they should have followed your advice. Though it's not automatically going to go your way, as investment could be funny. That might be their shining time, and the most-planned invest might not be worth it at times, well the shabbily ones could scale through, even with luck.

[Dr.Bitcoin_Strange]

Things to consider before going into any investment in the risk that is attached to that investment, learn how it can affect you, how you can prevent it and then decide if it's a risk you can actually handle, then you are free to invest after putting all that in consideration. There's a saying that one should do a proper research and learn about what they are investing their capital on before going ahead, your friend doesn't have any reason to  think that you don't want him to invest in Bitcoin, you already briefed him and if he is sensible enough, he will then start to do his own research and then seek your help or opinion where necessary. I can't just advise someone to start trading without warning them about the risk, and even if I do, I will still send them some materials to learn from and decide for themselves.

[icebar]

If it was you what would you do at this point, allow him to invest or what?
Your input are needed, maybe who knows I could share some post here with him to know that I was doing him right thing.

Bitcoin investment is profitable but if the decision to invest is taken without having proper idea, then the possibility of loss will increase. If any of my friends is interested in investing in Bitcoin, I explain to him the loss first because I know that if he loses money in the future, he can hold me responsible. However, even when I talk about the loss, I try to explain to him well that Bitcoin investment is a potential investment, but I must try to tell him again and again that there is risk in investment. If I know about my friend that he has sufficient income, I encourage him to invest, and if he does not have a source of income, I also advise him not to invest and give him an idea of ​​why he should not invest. Many investors want to invest for a short period of time, but short-term investment is never suitable for Bitcoin investment. Those who have a fixed source of income and have discretionary income are the ones who can benefit the most from Bitcoin investment.

[Achalugo BTC]

Anyone who's interested in an investment like Bitcoin must first have a job so they can sustain their discretionary income long enough to keep building the investment, another thing is conviction, the future of Bitcoin is unknown but with a strong belief that it would keep being valueable then anyone with conviction would keep up with long term holding regardless of how the market fluctuates, another thing that's very important is patience, holding longer requires lots of it.

Perfectly said bro. And I like the way you pointed the most important things out. Discretionary income should not be overlooked, as most people who invest think it is not that important, and that is why they fall into financial pitfalls because they don't plan properly. Also, they think holding or investing for the long term should give them enough time to achieve their goals. They are right, but the fact remains that the future is unknown and that mindset can help them avoid panicking even when the price drops. If an investor doesn't exercise patience and discipline, they can't hold for a long time and that's why some investors end their journey halfway because they fail to realize that the market requires a lot of patience to stay committed to their investment journey.

[Yeesha]

You have actually said it all, I don't think it is possible for someone to start Bitcoin investment without a source of income in fact even business or investment outside Bitcoin investment requires a source of income but it must not be stable but as long as one can get a discrestionary income after some period of time then it is okay but having a stable income will be a great advantage for someone who knows what they are doing in Bitcoin investment. And having the long term mindset is very important because it will help an investor not to panic because of sudden price drop.

If you don't have a source of income, what do you intend to invest? For you to secure your investment properly, you most have another sustainable source of income, in order to prevent anything from cutting off your investment, because any intervention might result in financial loss. Bitcoin investment need stable procedure. If you don't have discrestionary income, then it clearly means that you are not ready for investment, because you have to prepare yourself for the future and the new step you're about to take. Everything must be set in place, including your food, shelter, clothes, emergency fund and other things that will require money in the future, after that, you're free to invest with your discrestionary fund. If Bitcoin price changes overtime, it does not signifies the end of it, is only patience that will allow you to reach or get to your destination.

[PremiumcryptoHub]

Actually with this mentality he is not ready to invest in bitcoin or cryptocurrency because his mentality is like that of speculators, in fact there are many inexperienced people who think that it is possible to profit from bitcoin investment very quickly. OP, before investing in Bitcoin your old friend from secondary school should seriously consider the price fluctuations, and the possibility of losing capital, also arrange a source of income because if he doesn't have naira he may not be able to invest with discretionary income.

Even in the case of your friend, you should have mentioned to him that Bitcoin investing is not a way to get rich overnight, because to invest in this currency, even if buying fractional amount of BTC regularly, one should patiently hold the investment for 1/2 two cycles.

[Mate2237]

The first thing you have to consider before you start an investment is to know if you have enough knowledge start up the investment. A lot of people undermine the importance of having knowledge when it comes to making an investment, they assume that they don't have to know much but this assumption makes them make a lot of mistakes In the long run, learning makes everything much easier.


Secondly, you need to make sure you have a source of income either from a skill of a job, whatever keeps the money coming in.  An investment is regarded to fail before it even gets started when there's no source of income, people end up using the investment they made too solve their financial problems, this doesn't really help them achieve anything, without an income don't invest.

[Pikiboy]

Anyone who's interested in an investment like Bitcoin must first have a job so they can sustain their discretionary income long enough to keep building the investment, another thing is conviction, the future of Bitcoin is unknown but with a strong belief that it would keep being valueable then anyone with conviction would keep up with long term holding regardless of how the market fluctuates, another thing that's very important is patience, holding longer requires lots of it.

Usually as we know when venturing into Bitcoin investment there should be another source of income that would guide us towards our investment so that we can be able to hold for a longer duration than just wanting a quick profits from the investment without us looking for a better place that would give what we want to enable our investment yield profitably.
When they understand investment they know would know it is good to have an alternative source of income which they would be sustaining from without them having to touch their investments.

[JoyceBTC]

Anyone who's interested in an investment like Bitcoin must first have a job so they can sustain their discretionary income long enough to keep building the investment

This one you said is very important that most new investors neglect since they are after quick profit. Bitcoin can be profitable but profit is still not guaranteed. So having a job alongside, will actually help build your investment stronger without challenges of not being consistent due to lack of funds and it will also help one achieve their long term goal.

[Brizi5000]

Op you did well by explaining this much to your friend about bitcoin investment, at least you have given him just a little insight of what he’s expected to see in bitcoin investment. Now, the next thing to do is for him to decide if he really wants to invest in it or not, don’t try convincing him to start bitcoin investment and allow him to invest at his own choice.

He doesn’t need to spend time studying the price because no matter how much he study the price he still can’t outsmart the market because it’s very unpredictable. The best advise you can give to him is to let him know that bitcoin is a long term investment and if he wants to invest then all he need is a discretionary income to use and buy bitcoin regularly to enable him Hold it comfortably for the long run. The 2-4 years you told him of expecting profit is a bit too predictable for me and you know nothing is guaranteed in bitcoin so it would’ve been better you don’t give him a timeline of making profit but instead tell him to just focus on setting a long term accumulation target to be in a good position with his portfolio and reach his accumulation target before thinking of making profit.

[Sowat]

If it was you what would you do at this point, allow him to invest or what?
Your input are needed, maybe who knows I could share some post here with him to know that I was doing him right thing.

The Bitcoin has some advantages, but should not be treated as a reliable income source or the simply profit within certain period of time. At best, we cannot specify exact period of time when the investment can give the profit.

If I were in your position, I would not try to stop him making the investment; rather, I would simply ensure he is aware of all the risks. Only for this, it would be reasonable to use only the money the will not badly affect his daily life (life savings, rent, food, the money he can safely use without hurting it and paying back the debt).

Also it would be very nice, if he knew more about Bitcoin itself, its volatile nature and security measures and various ways of making investment.

However, the last word should always stay with him, only you should try to make sure he well aware of all the dangers.

[Giwagi56]

There is a reason why i don’t tell people about my investment or telling them i invest in bitcoin, because some of them don’t understand it and when you try to tell them the truth they will think that you don’t want to invest or make money the same you are doing, i have many friends and i have not discussed anything about bitcoin investment with some of them that don’t know bitcoin, because i know that if I do and they hear that there is a profit they will be eager to invest in it.

When you want to introduce bitcoin to a person, don’t first mention about earning, and even when you do, make sure you explain to them as a long term investment, and also make sure they understand how the market works, so that in the end no one will be blaming you for anything.

[Different patterns]

Lastly, I told him before you must join anything investment you must have work at your hand to do before joining bitcoin investment because through your work and salaries you would be able to sustain yourself without having to temper with your investment, and he said is that so serious? and I said yes. On his own he started seeing me as someone who doesn't want him to start his investment, however I decided to bring up this discussion over here since he has been seeing me as someone who doesn't want him to start up the investment.

If it was you what would you do at this point, allow him to invest or what?
Your input are needed, maybe who knows I could share some post here with him to know that I was doing him right thing.

I don’t think you did anything wrong by telling your friend the truth about bitcoin investment, initial is your friend that asked you, the kind work you are doing currently, and he request for explanation how it actually works, for you to tell your friend the truth about bitcoins, that means you tried your best, because bitcoin is not what one can forced anyone to invest, especially if the person not have much interest to invest. Because people nowadays like anything they are putting money in, they prefer to see the results immediately, and bitcoin is the one of investment that has to do with patience, and consistency before enjoy the fruits of your labor.

I believe you did your best, but if it were me, after explain everything to my friend, I will just encourage the person to do their own research, either online or by asking experienced person in field, so that they can make their on decision.

[MisFoxie]

If it was you what would you do at this point, allow him to invest or what?
Your input are needed, maybe who knows I could share some post here with him to know that I was doing him right thing.

In a situation like this if you stop without advising your friend they may dislike you for earning income but not sharing it with them, but they won't know that you are stoping for their own good. Anyway if I were in this situation I would definitely try to teach them everything but even then trading is a matter of experience and knowledge that a newbie cannot learn very easily they definitely have to go through a lot of losses.

Short term crypto trading can never be a full term source of income. Without experience and knowledge short term trading for newbie is kind of like gambling. You definitely have to explain all of these things to them and then whether they make a loss or make a profit is up to them.

[fredericktaylor]

Short term crypto trading can never be a full term source of income. Without experience and knowledge short term trading for newbie is kind of like gambling. You definitely have to explain all of these things to them and then whether they make a loss or make a profit is up to them.

Making money through trading is not an easy work, you must research the market with awareness, apply strategies and enter and exit the market by controlling greed. Making money through trading depends entirely on market movements, so there is a high risk of losing money here, so it is better to trading with the money you can afford to lose. This will not create additional pressure on yourself if you face financial losses. As a result, you can keep a cool head and learn from mistakes and trading with more awareness than before. However, one wrong decision through trading can lead to the loss of all your money, so it is wise to trading with proper research knowledge and understanding of market volatility without being overconfident.

[Yeesha]

Short term crypto trading can never be a full term source of income. Without experience and knowledge short term trading for newbie is kind of like gambling. You definitely have to explain all of these things to them and then whether they make a loss or make a profit is up to them.

Making money through trading is not an easy work, you must research the market with awareness, apply strategies and enter and exit the market by controlling greed. Making money through trading depends entirely on market movements, so there is a high risk of losing money here, so it is better to trading with the money you can afford to lose. This will not create additional pressure on yourself if you face financial losses. As a result, you can keep a cool head and learn from mistakes and trading with more awareness than before. However, one wrong decision through trading can lead to the loss of all your money, so it is wise to trading with proper research knowledge and understanding of market volatility without being overconfident.

Exactly, what everyone is talking about. This shows how important acquiring knowledge is, you can not always get it right, if you don't know how specifically it works. The best way to handle your trading, is through your decision-making. If you are always confused, afraid, or overconfident you might easily lose your funds if care is not taken. You have to be at your right state of mind if you truly want to know where you are heading to. Knowledge serve as your guidance through that journey for as long as you are a trader. If you do not research and also track down the market continuously you wouldn't know how to handle your market in the way it should be.