When making an investment, what we should first consider is our income level, what percentage of money do we earn on a basis and how much are we willing to begin the investment with, what strategy is best suitable for us in making this investment and how we are going to overcome the aftermath on this investment in balancing through the economy challenge and the needs that may arises, how all these are not going to affect the investment and how wea re going to be sustainable in making same investment without any thing left undone or being affected, proper and adequate planning is very important to be in place before the start of an investment and choosing the right asset is also an important thing never to left behind.
Yes, all what you said is correct. We do not need jump into investing without making good calculations of our cost of living, our savings/emergency funds and other minor expenses, if we don't then there is certainty of becoming affected after making the investment which may result to the urge of tampering one's portfolio. It has been drawn to the best of our knowledge to adhere to the rule of investing not aggressively but passively, this way we don't get to regret.
In the investment and personal finance world, the term "passive" has a specific meaning that revolves around getting and/or receiving income without working - in other words an investment can earn a passive income because either it bears interest or it grows in value faster than the rate that value is withdrawn from it.
It seems wrong and/or misleading to use the term "passive" as a way of describing how we are investing into something like bitcoin.. Sure there can be ways that we set up automated buys or we could follow a system in which we invest every week no matter what from our discretionary/disposable income, yet I still would not describe that as passive, even if there might be some automation involved in it.
Also, we could use income that comes from a passive source in order to invest into another asset such as investing into bitcoin from the proceeds of your property rent (presuming that you don't have to do any work for that property rent income)...
Sure, I might be quibbling about semantics, yet it seems to be frequent that guys are misusing the term "passive," and it can become quite confusing to either try to figure out what they are saying or what they mean, especially if they are most likely talking about income that they are receiving from working and maybe it does not even really matter so much from where they are getting their income because in the end, the amount of income that is coming in needs to be greater than the expenses in order to be able to invest with what is remaining and the remaining portion is described as disposable/discretionary income and so if they have $600 per month in disposable/discretionary income, they could be aggressive and invest at or near 100% of that into bitcoin or they could be more whimpy and invest only 10% or 20% of that into bitcoin.. so maybe you are suggesting a more whimpy approach is the same as passive, and I think that it is misleading to use the word passive when you might be talking about being less aggressive in the BTC accumulation approach.
For sure we think about going to past where everything is cheap that's why people should not make the same mistake again since there's still plenty of time for them to accumulate and they should not about they came late since on bitcoin there's nothing like that exist since price of bitcoin continuous to grow.
Even though there are no guarantees in bitcoin, it seems quite likely that people who are thinking that BTC is at a current top and vulnerable to crashing, and so therefore they hesitate to buy BTC, and if they continue to hesitate to buy based on that kind of thinking which also relates to their thoughts of "being too late," then in 3-4 years if they still had not been buying BTC, they are likely going to see that bitcoin had landed in a place in which 5 digit bitcoin was not even available anymore and so those who had gotten in at current prices are looking like geniuses.
Again, surely not guaranteed, yet it is way better to get some kind of position size into bitcoin rather than presuming from the mere fact that we are hitting ATHs that there needs to be any kind of correction from here or even that BTC prices need to return to these price levels once (or if) they decide to go up... and even this year, we well could be experiencing a BTC price range that is bouncing around $120k to $180k (with $60k price moves to the upside and downside over a few months).. .again, no guarantees of these kinds of scenarios, yet the ONLY way to benefit from those kinds of possibilities is to buy some bitcoin and/or buy exposure to bitcoin (if for some reason you are not ready, willing and/or able to buy bitcoin directly, which would be the preferred way to hold your cornz).
You are right because lately I have noticed so many persons with different assumptions of the possibility of Bitcoin price making some correctional moves, so with that information most people feel that is something that would happen and instead of them to keep buying they are still waiting for the correction to happen so that they would have an opportunity to take advantage without knowing that those information are based on assumption and there is a possibility it may likely not happen, so perhaps @JAY I think your advice on this situation is actually the best way because with the current price movement of Bitcoin nothing is for sure now so one of the preferable way is to take a position size on Bitcoin so that if the price movement keep increasing they will never be left out because there position will still be running for them. However one of things I realized about investment is that an investor shouldn't always rely on assumptions of people or even if they should give a listening ear but there should be a back up plan that if should incase it doesn't work the way they had assumed, then there investment back of plan will cover for it.