Quote from: Justbillywitt on Today at 07:09:36 AM

Quote from: MainIbem on October 12, 2024, 11:54:54 AM

Talking about diversification, I'll rather diversify to another investment than investing in other Cryptocurrencies asides Bitcoin, at least one could still use some portion of the profits from other investments like Real Estate, Commodities to continue building their Bitcoin Portfolio.

If we check the performance of bitcoin over the last decade, you will notice that bitcoin is the most performing asset in terms of ROI. Bitcoin has given a better return than real estate or any other investment that you will think of. Sometimes when I hear people say that they want to take profit from their bitcoin investment and diversify to other investment it baffles me. Does it really make any sense that you are disposing the most performing asset to diversify to other things that can't give you half of what bitcoin will give you if you continue holding bitcoin.

I will rather stick with bitcoin than diversify to any other investment. As an investor if you think you have gotten enough bitcoin that's enough for you at the moment. It will be best to stack up cash, as diversification. with your bitcoin and cash deposit you are far better off than diversifying to real estate or anything else.

It does not hurt to diversify investments after you have already reached decently large size of investments in bitcoin and cash, especially after you might have several years worth of expenses in bitcoin and/or cash.

Diversification is a discretionary matter, and it becomes more justifiable the larger your investment portfolio becomes.

When you are first investing, and maybe even the first 4-10 years or more, you might not need to diversify since you are still in the early stages of building your investment, and maybe after 4-10 years or more you start to get to a point of having 1 year or more worth of expenses invested into bitcoin, and if bitcoin had appreciated in price too, then you might have even more years of your expenses in bitcoin and cash, and at that point it seems to make sense to put value into other areas, such as stocks, bonds, properties, commodities and perhaps other areas, and again surely discretionary regarding how to allocate, reallocate or into what to diversify in the even that you want money in various areas and also you might also want your money to be working for you rather than the portion in cash might not be working for you and so once you have even 6-12 months of your investment in cash, you may well want some of that to be working for you, since maybe if you have an emergency you might only need 3-6 months of it, and even if you need more months, you would not necessarily need to access those funds right away but instead several months down the road so some extra funds could be tied up or invested in various other areas in which you would spend your other investments prior to spending your bitcoin.. .

Not easy answers and can become more complicated to generalize how to deal with such situations when the situations of people will likely end up varying after they start to accumulate more assets/investment and wealth and different ways to deal with volatility of bitcoin and even volatility of a variety of markets.

So when we frequently talk about diversification for the mere sake of diversification as dumb, it especially applies to newbie investors who may well be getting distracted by ideas of diversification when it is not needed in the early stages, but diversification does start to make more sense after accumulating more wealth.. even though it is still quite discretionary and varied in the ways that any bitcoiner might end up diversifying... including that there are some bitcoiners who come brand new into bitcoin, but they had already had various other investments in other assets (so they might come to bitcoin already largely diversified), so they are in a different position if they either already have a diversified portfolio or if they come to bitcoin and they have a lot of wealth, then they have more options in which diversification might be one of their considerations, which might not make much if any sense for most newbies who might be DCAing into bitcoin and don't even have very much already accumulated wealth.

Quote from: Out of mind on Today at 04:43:43 PM

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For new investors the decision to wait for dips in price can be a little delay in increasing the investment range so DCA should start with the amount allocated for investment and later if he expects more bitcoin holdings to get the price correction level in the long term cycle. Buy more from Dips

As new investors are always excited to buy, so I would say that newbies should wait to buy Bitcoin. However, using DCA is a very good strategy for buying Bitcoins, so an investor will always be risk-free using this method. It is important to allocate an amount of money before investing, while an investor waits for the dip to buy bitcoins he can by using the DCA method with an amount of money. However, if such a new investor plans to invest long term in relation to this cycle, and he can HODL then I think he will benefit in future. But of course everyone here should wait to buy deep, when the market goes deep it is better to buy more bitcoins and HODL.

You are giving bad ideas Out of mind. There are no reasons for newbie bitcoiners to wait, and DCA allows them to start right away and to figure out how much of a budget that they might want to put into buying BTC. There is also no reason for newbie bitcoiners to wait for dips, especially if they plan on buying BTC weekly, even though within their weekly buys they might want to try to time their buys on the dips, while recognizing that it can be challenging to accomplish such buying on the dip and it may not even matter very much in the long run if they buy the dip or not so long as they are buying every week.

The more bitcoin that a guy accumulates, then the more he is prepared for UP.. so if he is more prepared for up, then he might feel justified in holding back some fiat in case the BTC price dips, yet there are always trade offs to employing waiting strategies, even though it could end up paying off if the BTC price dips... so the answer is not clear since we cannot know in advance if the BTC price might dip or not, yet we can decide for ourselves whether to hold back any value for buying on dips, and if we do then how much and then how much of a dip to make various buy on dips... whether once or to spread out the buys realizing that some buys might not go low enough to execute.