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Usually determining purchasing power based on planning, you will never be able to do it if you don't plan properly. Because the better the plan, the more you can incentivize yourself to buy bitcoins. At present there are dips in the wider bitcoin market, so you should
be cautious and buy dips to ensure success later on.These are a bit strange ideas regarding concentrating on how any of us might be more profitable to buy the dip, and sure I don't have any problem with the idea of being able to buy more bitcoin with the same amount of money, and so if we are in the stage of BTC accumulating, maybe over time if we are strategizing our regular buys of bitcoin to try to buy on dips rather than merely buying whenever we have the money coming in, sure maybe we will be able to increase our bitcoin stash by 10% or so.. but in the whole scheme of things it may not be easy to measure the extent to which we might be becoming more profitable by buying the dip instead of just regularly buying.. .
So in some sense getting obsessed about whether you might have bought some BTC cheaper causes me to consider that you might be distracted by the short-term dollar values of your stash and your desires to turn over some quick profits in dollars so that you can buy yourself some kind of a treat..... so maybe there is nothing wrong with that, except that it is likely a bit short-sighted when it comes to something so valuable like bitcoin that many folks likely end up selling too many of their BTC too soon and/or fucking around with trying to trade (gamble with) their bitcoin rather than just stacking sats at no matter the price and not getting too concerned about if they may or may not be 5% or 10% more in profits in the short term, since it may well not matter 10-15 years down the road if you might have 1.8 BTC that you bought at an average of $90k per BTC or 2.5 BTC that you bought at an average of $100k each.... and maybe the more important thing is actually accumulating more BTC rather than getting too worked up about the cost.. or maybe if you spent time fucking around with trading you end up with less BTC... even though you might be able to get 10% or more profits because your costs per BTC end up being less.. even though sure, I am not opposed to getting more BTC or having lower costs per BTC.. just opposed to the mindset that monitors such short term profits in seemingly trading kind of ways... when it may well take 10-15 years or longer for many folks (especially newbies to bitcoin and/or investing) to build their bitcoin and/or their overall investment stash.
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Investing with debt is not a bad idea but when you invest with debt you have to remember that you can lose money from your investment because it is risky.
You might have to figure out a way to separate out the two ideas.. the use of debt is one thing. The investment into something volatile and/or risky is another thing.
So maybe many people will say to avoid investing with debt because if you invest with debt and even lose money from that investment then you will never be able to repay that debt.
Some people will say? Are you saying that? Losing money from the investment does not necessarily relieve you from the obligation to pay the debt, unless the debt and the investment are somehow connected and maybe the lender knows that he ONLY gets his money back if you make money on your investment.. That sounds dumb when put like that since lenders are not going to want to lend if they find out that the only way that they get paid is if your gambling pays off.
I would like to say that rather than investing with debt, invest as much as you can afford. If you have little money then start with little money and try to increase it gradually so that you don't get burdened with debt.
That is a good suggestion. You can invest into bitcoin over time, with whatever extra money that you have and build your investment into bitcoin, so then you do not have to enter into something like bitcoin with a lump sum.. so that is one of the advantages of investing into something like bitcoin where you should be able to figure out ways to invest within your budget and small amounts over time rather than lump summing into it... and yeah, if you are able to lump sum into bitcoin, you can do that too, but some folks do not have options to lump sum invest, but yeah, with bitcoin lump sum investing is not necessary.
@Rabata, if you suggest investing with debt you should remember that we invest in Bitcoin for the long term. Will the lender wait long time to get his loan back? No never.
This also makes little sense AirtelBuzz.. Do you even know how loans work? There might be some lenders who are willing to tie their pay back to the timeline that you believe that you need it, but they likely are going to have their terms and expect to get paid no matter how your investment does... you can pay back in payments or perhaps in a lump sum, and so the terms of the loan can be negotiated and such terms might include the need for collateral or the loan could be uncollateralized.
I am the complete opposite of investing with debt. I will invest according to my ability but not with debt.
The use of debt is a more advanced way of investing, as compared with regular investing without the use of debt, so it may well not be necessary and the debt adds more risk and/or leverage.. that may or may not be justifiable. Each person needs to consider his own situation in order to figure out the extent to which debt might be helpful to his investment into bitcoin.
Your earlier suggestion about building your way up in your investment is a good one, and loans may or may not be helpful, yet I agree with you that there is value in building up investments and even learning about basics prior to employing more advanced techniques and many times the more advanced techniques are not even necessary, and they may well end up unnecessarily bringing additional risks and costs to an other wise great investment such as bitcoin. Just think about in the last 9 years, bitcoin has been one of the best (and probably the best) investment that people could have had made, yet some people still managed to either lose money or to not make as much money as others, and truly in the past 9 years it would not have had been necessary to use leverage or loans or anything like that.
In the
last 9 years, merely investing $50 per week would have resulted in $23,500 invested and nearly 12.5 BTC accumulated... so that surely would not be a bad place to be.
Like JJG use to advice, if you must gamble with shitcoins let it be 10% of your portfolio and 90% in bitcoin.
Probably better to clarify that I recommend against investing into shitcoins, so I will say that if a person has little to no abilities to control his temptations to gamble with shitcoins, then at least he should limit his investment to no more than 10% of the size of his bitcoin investment (and without cheating too)... So yeah, there may well be folks who might be saved by following that kind of advice to limit their shitcoin exposure, and/or that kind of advice might help to put them into a better mindset to attempt to overwhelmingly stay focused on bitcoin.. so in the end they still do what they like but they put a decently sized limit on their involvement with shitcoins and/or gambling.
So if you advise someone to invest in Shitcoin then you can definitely give him another advice, fill your portfolio with 80%-90% Bitcoin and 10%-20% Shitcoin.
I doubt it is a good idea to advise anyone to invest into shitcoins, so instead to suggest that if they cannot resist but to get involved in some shitcoins, then to limit there investment to no more than 10% of their bitcoin size.. so yeah.. 10%-20% would be way too high, and probably even 10% would be too high, but at least 10% is the max and is not going over the max.
Once a person is involved in shitcoins, there could be questions about what to do if either the shitcoin grows faster than bitcoin (in the short term) or if bitcoin grows faster than the shitcoin.. ..
I have no problem with the idea of letting investments run, and then figuring out how to deal with them in terms of there might be some point that reallocation might seem justified.. and another thing is that maybe if bitcoin is growing faster than the shitcoin, but the person still might be in bitcoin accumulation phases and then if the bitcoin investment is $9k at the start and there is an allowance for the shitcoins to receive $1k, but then maybe after 6 months the bitcoin is $12k and the shitcoin is still at $1k.. and maybe if the person is investing $100 per week, he might still invest $90 per week into bitcoin and $10 per week into the shitcoin(s).. but yeah, there would be discretion regarding how to deal with these kinds of situations, and surely from my point of view, any kinds of errors should be on the side of protecting the bitcoin investment.. but still guys might get tempted into other kinds of resolutions that might border on gambling and may or may not end up working out positively (profitable) for them... but yeah, each of us has to make these balances for ourselves and take responsibility over our execution of our choices.