What are things to consider before someone go into investment?

[Xackie]

The simple truth is that it is wrong to invest in Bitcoin with an emergency fund or money that you will use within a very short period of time, and if you are investing in Bitcoin so that you will earn profit in a very short period of time, is better you don't venture into Bitcoin investing, otherwise you might regret making such investment. There are people who make such mistakes but they are forced to sell before time. Bitcoin investing requires patience because it doesn't reward investors immediately, so when you invest your money, the right thing to do is to be patient with your investment in other to make the most profit out of your investment, but investing for the sake of making quick money can be very disappointing.

Investing with your emergency funds is like a ticking time bomb that can explode at anytime.  When it does explodes it leaves alot of damages.  There are still investors who underestimate the power of an emergency funds. Emergency funds act as shield that protects one's Investment from selling to settle bills or an urgent issues. We know how prone a computer can be to virus if they don't have an Anti virus software, same logic applies for an emergency funds. As long a you already have your discretionary income, then they should split into two , one goes directly into bitcoin while the other one should be inside our local bank which is our emergency fund.

[Swift_tr]

Investing is more than just having money to invest, you did right as a friend to explain these things to him. He should understand that there are risks involved so he needs a financial backing for this journey so if he didn't have a job prior to this time, then he should get one so he'll be able to sustain himself without looking back at the investment he just made that hasn't matured.

Your friend is already asking how much profit he could make, this is the mistake a lot of persons make. They forget to include the concept that you could lose and if you can afford to lose what you're investing.

Before anyone should think of investing, certain things should be put into consideration like their financial stability, their level of risk tolerance and even the timeframe they are willing to invest for. All this matter especially investing in bitcoin because like we know long term is usually the goal when it comes to investing in bitcoin.

If your friend doesn't have a reliable source of income then he should first get one so he can enjoy the process and not find himself in situations where he will have to make hard decisions about his assets.  I would not also stop him, if he feels that he can handle it then he's free to do so but as long as I passed the information then I'll be able to sleep at night.

[NewRevelation]

Investing is more than just having money to invest, you did right as a friend to explain these things to him. He should understand that there are risks involved so he needs a financial backing for this journey so if he didn't have a job prior to this time, then he should get one so he'll be able to sustain himself without looking back at the investment he just made that hasn't matured.

Your friend is already asking how much profit he could make, this is the mistake a lot of persons make. They forget to include the concept that you could lose and if you can afford to lose what you're investing.

Before anyone should think of investing, certain things should be put into consideration like their financial stability, their level of risk tolerance and even the timeframe they are willing to invest for. All this matter especially investing in bitcoin because like we know long term is usually the goal when it comes to investing in bitcoin.

If your friend doesn't have a reliable source of income then he should first get one so he can enjoy the process and not find himself in situations where he will have to make hard decisions about his assets.  I would not also stop him, if he feels that he can handle it then he's free to do so but as long as I passed the information then I'll be able to sleep at night.

If not for anything, at least, he should just put the things said to him in mind, and then try doing some kind of research about Bitcoin investment, and at that point do a simple comparison to wether his friend is speaking right or wrong.

But from his reactions, he isn't making any effort to find out other things about Bitcoin investment so that he could compliment the knowledge shared to him by the OP. People just want to make it fast enough, but don't want to go through the tough process of building things up gradually. You know, with the name Bitcoin has made for himself, people are always ready to jump in, thinking that it's reward is immediately. Everything has time. Nothing good comes easy at all.

[Judith87403]

Investing with your emergency funds is like a ticking time bomb that can explode at anytime.  When it does explodes it leaves alot of damages.  There are still investors who underestimate the power of an emergency funds. Emergency funds act as shield that protects one's Investment from selling to settle bills or an urgent issues. We know how prone a computer can be to virus if they don't have an Anti virus software, same logic applies for an emergency funds. As long a you already have your discretionary income, then they should split into two , one goes directly into bitcoin while the other one should be inside our local bank which is our emergency fund.

You just gave a thorough explanation of what it is like when an investor makes the mistake of using their emergency fund to invest in Bitcoin. The problem with some investors is always trying to outsmart the market. Some of them might just see the price falling and will say that it is a good opportunity to stack more Bitcoin at cheap price but since they don’t have any reserves for situation like that, they might want to take the risk of using their emergency funds with the mentality that after buying, the price will increase and they sell part of their Bitcoin holdings and return back their emergency funds but when the market is not able to increase after they used up their emergency fund and an urgent need surface, they will have no option than to sell off their bitcoin when the market is still falling which will lead to losses. No matter the temptation, an investor shouldn't tamper with their emergency fund.

[Big Dirams]

The simple truth is that it is wrong to invest in Bitcoin with an emergency fund or money that you will use within a very short period of time, and if you are investing in Bitcoin so that you will earn profit in a very short period of time, is better you don't venture into Bitcoin investing, otherwise you might regret making such investment. There are people who make such mistakes but they are forced to sell before time. Bitcoin investing requires patience because it doesn't reward investors immediately, so when you invest your money, the right thing to do is to be patient with your investment in other to make the most profit out of your investment, but investing for the sake of making quick money can be very disappointing.

Investing with your emergency funds is like a ticking time bomb that can explode at anytime.  When it does explodes it leaves alot of damages.  There are still investors who underestimate the power of an emergency funds. Emergency funds act as shield that protects one's Investment from selling to settle bills or an urgent issues. We know how prone a computer can be to virus if they don't have an Anti virus software, same logic applies for an emergency funds. As long a you already have your discretionary income, then they should split into two , one goes directly into bitcoin while the other one should be inside our local bank which is our emergency fund.

The power of emergency funds is been underestimated by some investors especially the new investors, emergency funds Is very important when we are investing and as long as we have the long term mindset of mindset then emergency funds will be of a positive value to our investment.

Discretionary income is the perfect income that is meant to investment, and other investment aside our discretionary for investment is a risky decision. And emergency funds on the other hand serves as a great protector to our investment so we wouldn’t touch our investment Incase of any emergencies and urgent needs.

[goldkingcoiner]

The most important thing is to calculate the amount of money you can safely invest long term without being tempted to withdraw or worse, selling your investment on a loss just because some unexpected bills that need to be paid appeared...

Or you can DCA with a certain amount of money every week/month/year/whatever. Just be sure that you are using money that you can afford to go without for the moment, at least. That's still just as important.

[Derekfunds]

Investing with your emergency funds is like a ticking time bomb that can explode at anytime.  When it does explodes it leaves alot of damages.  There are still investors who underestimate the power of an emergency funds. Emergency funds act as shield that protects one's Investment from selling to settle bills or an urgent issues. We know how prone a computer can be to virus if they don't have an Anti virus software, same logic applies for an emergency funds. As long a you already have your discretionary income, then they should split into two , one goes directly into bitcoin while the other one should be inside our local bank which is our emergency fund.

Investing with your emergency funds can only be like a ticking time bomb if you don't have a good source of income that can help you in case if something went wrong. Emergency funds can be used sometimes as an alternative to our discretionary income if there is Dip and we don't have money in our discretionary but before using it, someone has to make sure there is also an alternative in case there's an emergency.

[rachael9385]

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.

This is an important aspect of bitcoin investment that some people neglect, they only focus on the profits that they can make without thinking about the circumstances and process involved in becoming successful at it. Having an income is highly vital, the reason why some people end up selling their coins early and not gaining anything is because they get into emergency situations that they have no backup funds to solve.

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.

After telling him what he needs to know then ball is in his court, he is an adult he can decide to make any decision that he thinks is right. If he makes the investment what you can do is to guide him to make sure that he doesn't make any mistakes that would affect his investment.

[Loyang]

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.

This is an important aspect of bitcoin investment that some people neglect, they only focus on the profits that they can make without thinking about the circumstances and process involved in becoming successful at it. Having an income is highly vital, the reason why some people end up selling their coins early and not gaining anything is because they get into emergency situations that they have no backup funds to solve.

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.

After telling him what he needs to know then ball is in his court, he is an adult he can decide to make any decision that he thinks is right. If he makes the investment what you can do is to guide him to make sure that he doesn't make any mistakes that would affect his investment.

Proper planning is very important. The thing we see most in new people is FOMO. If they do not rush and gain some knowledge and knowledge about emergency funds etc. and then if they start investing then it will be a very good decision for them. But as soon as they hear about the benefits, they start rushing to start investing, this rush becomes a big danger for them. If they face any kind of financial crisis in the middle of investing then they cannot face that crisis and they are forced to sell the investment. So do not rush while starting and invest with proper planning

[Btcdeybodi]

The most important thing is to calculate the amount of money you can safely invest long term without being tempted to withdraw or worse, selling your investment on a loss just because some unexpected bills that need to be paid appeared...

Or you can DCA with a certain amount of money every week/month/year/whatever. Just be sure that you are using money that you can afford to go without for the moment, at least. That's still just as important.

This is why having an emergency fund is important whether you are investing a lump sum or through the DCA method so that in case of an emergency need you won't have to tamper with the amount you have invested already. It is not really about starting an investment in bitcoin that matters but how to be readily prepared in case of any unplanned circumstances that may happen in the course of holding. It is necessary for a bitcoin investor to plan ahead of time because the market is volatile which means that if he doesn't make a proper plan, it might lead to not continuing with the investment when the real challenges begins to arise.

[Stable090]

Investing with your emergency funds is like a ticking time bomb that can explode at anytime.  When it does explodes it leaves alot of damages.  There are still investors who underestimate the power of an emergency funds.

If you can invest your emergency funds, then I already believe that you won’t be able to hold your bitcoin for a long term, because if anything happens, you just going to sell your bitcoin, and use to
Money for any problem which you are having at that period of time. Don’t be surprise that bitcoin price might have dump when you will be in need of money, and you won’t have choice than to sell at rush.

If I see people Dey invest their emergency funds for bitcoin, I Dey feel say dem never sabi much about bitcoin yet, because we suppose Dey secure emergency funds keep even before we start bitcoin investment, so anything wey make u carry d money go invest, if anything happen u go sell d bitcoin, and nobody knows when emergency go happen, e fit be when we no even expect self.

[MorganaX]

The most important thing is to calculate the amount of money you can safely invest long term without being tempted to withdraw or worse, selling your investment on a loss just because some unexpected bills that need to be paid appeared...

Or you can DCA with a certain amount of money every week/month/year/whatever. Just be sure that you are using money that you can afford to go without for the moment, at least. That's still just as important.

This is why having an emergency fund is important whether you are investing a lump sum or through the DCA method so that in case of an emergency need you won't have to tamper with the amount you have invested already. It is not really about starting an investment in bitcoin that matters but how to be readily prepared in case of any unplanned circumstances that may happen in the course of holding. It is necessary for a bitcoin investor to plan ahead of time because the market is volatile, which means that if he doesn't make a proper plan, it might lead to not continuing with the investment when the real challenges begin to arise.

Having a clear understanding that life is full of shit and it doesn't make announcements when it will start coming. Knowing all this helps the investor prepare for these emergencies by stacking up funds, and when there is no alternative set aside for these events, it takes the investor back to the act of tampering with his portfolio, which never ends well because from there a lot of other ideas are given birth to like the thoughts of gambling with your coins to get back the portion of savings you used to settle up the pending issues and lots more. So better to prepare than to stay like that and let problems hit you unexpectedly.

[Berry2d]

The most important thing is to calculate the amount of money you can safely invest long term without being tempted to withdraw or worse, selling your investment on a loss just because some unexpected bills that need to be paid appeared...

Or you can DCA with a certain amount of money every week/month/year/whatever. Just be sure that you are using money that you can afford to go without for the moment, at least. That's still just as important.

This calculation brings us to the reasons why it is clearly stated we should stake what we can lose and by so doing we can be capable to identify our investment plan that won't chock but keeps moving simultaneously till the estimated or established investment plans.
Investment at times requires serious and careful observation so it won't become stressful in a long run, to do this we must be judiciousand or meticulous in thinking so what we can lose can be used for our investments.
The best investment strategy is this mentioned above because it will enable one enjoy the benefits of bitcoin as the investment will not be tamped with before the estimated time.

[Sobz]

The most important thing is to calculate the amount of money you can safely invest long term without being tempted to withdraw or worse, selling your investment on a loss just because some unexpected bills that need to be paid appeared...

Or you can DCA with a certain amount of money every week/month/year/whatever. Just be sure that you are using money that you can afford to go without for the moment, at least. That's still just as important.

Knowing how much to invest in Bitcoin and managing money is very important and if one us not being calculative it there will always be a challenge in Bitcoin investment. After Understanding the amount of money that needs to be invested in Bitcoin,  I think the next thing to understand is the volatility of bitcoin because this is where a lot of people make their mistakes. One can use thhe amount they can afford to invest Bitcoin but once the price of Bitcoin falls they panic so much as if bitcoin will never rise again. The reason why people get panicked is because they dont understand bitcoin volatility and they want to make profit from Bitcoin in a short time.

[Youngrebel]

If you can invest your emergency funds, then I already believe that you won’t be able to hold your bitcoin for a long term, because if anything happens, you just going to sell your bitcoin, and use to
Money for any problem which you are having at that period of time.

Using Emergency fund to go into investment of I see that kind of a person i go give am hand ahh money that you know in to time you will need it what if after purchasing coin tge market drops snd you need your money? Tho there are some kind of people who can risk it but to me abeg abeg I can’t emergency money Na emergency money anything can happen at any time.

[Crypto_Timothy]

The most important thing is to calculate the amount of money you can safely invest long term without being tempted to withdraw or worse, selling your investment on a loss just because some unexpected bills that need to be paid appeared...

Or you can DCA with a certain amount of money every week/month/year/whatever. Just be sure that you are using money that you can afford to go without for the moment, at least. That's still just as important.

For real, if you can be certain of how much you want to invest wether weekly or monthly and of course you secure an income stream for it then your investment journey is safe to sail actually because usually what will mess alot of persons up  is that they will start with certain amount and then when things get red, they start cutting down how much they invest and then ultimately they start touching the money they have already invested and people like that are the ones that rush into it just because they saw someone doing it and they took wanted to make long like them.

Even if you can't continue investing for long but you see the amount you have already invested, you must make sure your condition doesn't get to the point where you need to touch it for survival otherwise you will just be going in circles around your investment.

[Pearl_20]

It is better he sees you as someone who doesn't want him start than later going behind you to accuse you of falsely of taking money from him because from your story, it seems your friend is interested in just dumping his money somewhere and just expect returns from it without him doing any work aside just investing in the coin.
Bitcoin is not a ponzi scheme and the moment people start asking you of a certain period to expect a return, the you should never fall for the trap of acting like anyone can decide the market but rather you should make them
Do more research by themselves as it will save you from a lot of stress and blames.

You've answered correctly for such friend that wants to get rich quick it is better to exempt yourself else he will start seeing you as someone you has even used his money and you've rightly said it bitcoin is not Ponzi scheme that you're asked to invest today and get double of your money in day's or weeks time.  It is better to be seen as a bad friend to save your head from some situation and this one requires you to withdraw yourself because since he already have the mindset of his investment giving returns almost immediately it's a sign of trouble coming, bitcoin investment isn't Ponzi and just like you said also, anyone who is interested in bitcoin should do a thorough research on their own before doing so.

[Uhwuchukwu53]

Investment of any kind need others sources of income, if I am given advice to someone with investment intention first consider the type of investment he wants to go into the feasibility and the market demand and what the investment can yeild within short and long term, I will straighten the investor by advising him to have little source of income that can sustain the investment because what majorly killed investment is over dependant on investment where the investor can't wait to solve some problem mino problem that requires argent attention, any investment is good when free from much dependency, many at times wonder why many business died is a result of not having others sources of income but channel all hope and daily or weekly touch of the income of the investment that would have been added to increase the numbers of one investment.

[Futurexxx]

Investment of any kind need others sources of income, if I am given advice to someone with investment intention first consider the type of investment he wants to go into the feasibility and the market demand and what the investment can yeild within short and long term, I will straighten the investor by advising him to have little source of income that can sustain the investment because what majorly killed investment is over dependant on investment where the investor can't wait to solve some problem mino problem that requires argent attention, any investment is good when free from much dependency, many at times wonder why many business died is a result of not having others sources of income but channel all hope and daily or weekly touch of the income of the investment that would have been added to increase the numbers of one investment.

Try to understand that running a business that generate income for you daily and investing in an asset that appreciates in value overtime like Bitcoin are not the same. You can live off the income from your business, but you cannot depend on your investment for survival, because the dividend will be mature in the future, it's not like a business that generate income daily, weekly or monthly.

If anyone wants to invest in Bitcoin or anything that appreciates in value overtime, the said person needs to have a discretionary income and a source of discretionary income, so that he can be able to buy and accumulate consistently, because without having a discretionary income or the source of it for consistent accumulation, you wouldn't be able to invest consistently and effectively, so it's a must if you want your investment to be successful.

[Itz-prisigold]

Don't try to lose sleep over someone's stupidity, because at the end of the day, he will still be the one to face the full consequences of his decisions.

What you said is nothing but the truth, but most times things can get more complicated than you think. You see most of these people that don't like listening to advice, they are fond of not accepting responsibility of their own decision when something eventually goes wrong.

Instead, they will put every blame on you for introducing them to the investment, as if you actually force them into it. By that time they will not remember how you warned them that Bitcoin is not a platform where you'll come and make quick money, but they are the ones that came into Bitcoin with that poor mindset.

So whatever you do, never make Bitcoin look like something a person can rely on to escape poverty overnight, let them know that there are risks involved with every investment and they are responsible for making the decision.  You can explain things to someone and tell them the correct way to go, but you can't make the decision for them.