Quote from: Marvelockg on Today at 10:53:15 AM

Quote from: Odohu on Today at 10:14:24 AM

Quote from: Sanitough on Today at 06:54:18 AM

Quote from: Ambatman on October 13, 2024, 08:04:22 PM

Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.

"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.

No this is a wrong advise because if I know I will lose the money, I will never invest it! This statement sound like fud, a way of amplifying the risk in Bitcoin investment. Tell me, how do people lose money in Bitcoin investment? If you can be sincere with this answer, you will realize that most people who lose money in Bitcoin are those who invest today and are already looking to sell the next day; these are not investors but traders.

that's why it's called a basic concept because at the start, you have to invest what you can afford to loose which is more like another way of saying, Invest what you can afford to leave for long as though it's not your own. no one invest in an asset because they want to loose the amount they've invested. If that's the case, it will be practically impossible to continue investing when you've stacked up a good amount of Bitcoin. The analogy is only to help you invest and take your mind off any thought of selling untill you've reached your accumilation goal.

As an investor, you should know the risk involved in what you're investing into and even though we're certain that Bitcoin is not all that risky to the extent you can just loose all your investments without your knowledge or just suddenly, it's also good to acknowledge certain possibilities so while you're investing most expecially as an early investor, you try to invest an amount you won't need for a long time.

These are difficult concepts for many people to wrap our minds around, since you are correct Marvelockg that we are not investing into anything, including bitcoin with an expectations that we might lose or that we will lose everything, even though we should be investing with money that we don't necessarily need and that we are able to completely lose in the event that the investment were to go down or were to go to zero.. So we continuously should consider outside chances that BTC could end up going down and/or going to zero and we must be willing to accept that.

Part of the power of compounding value is that the most that we can lose is 100%, so the compounding effect is way greater on the way up as compared to on the way down. The compounding on the way up is nearly infinite (even though practically it is not exactly infinite though the value can continue to double and double and double and double for a very large quantity of times). The compounding on the way down (might not even be exactly the right word) is that in total the most that can be lost is 100%, so we are starting with 100%, and so maybe each time that we lose 10% we get closer to zero, yet we might not completely ever run out if we keep losing 10% the number ends up getting really small, even if it might not ever completely go to zero...

On the way up, we could have many many times of continuing to gain 10% and our results could end up going way above 100%, and then we also could experience several periods of greater than 100% returns, and the value compounds in a much more exponential (and difficult to imagine) way on the way up as compared with on the way down, so when we invest into something like bitcoin we can continue to consider that the most that we could lose is 100%, but there are a lot of upside potentials that are not merely fantasies, yet they have historical precedent that includes bitcoin investment thesis rationals that are not getting any weaker today as compared to what they had been in the past, even though some of the slope of the upside likely has become less steep - while at the same time, bitcoin still reasonably has 30,000x potentials for upside that might not play out in the near-term and could even take 50 to 200 years or longer to play out, but those justifications to invest into bitcoin continue to exist, even if we might not understand many of the possible causal forces and even if we might have some difficulties understanding various aspects of the future...

Yet, we can still choose our BTC position size in such a way that gives us a certain level of comfort that we are ready, willing and able to account for both the upside and the downside and to accept the consequences based on how much we choose to ongoingly invest or even to keep inside of bitcoin without retaining ideas that ONLY the upside is possible or that with enough passage of time there is guarantees for up... Members here seem to frame their ideas all the time in terms of these ideas of guarantee, which is not the case.. even though there continue to be a lot of reasons to consider bitcoin to be a strong investment including having a lot of strong Lindy effects, too... which is that a longer a technical thing in bitcoin is in place the more likely it is going to continue to maintain itself and potentially grow with Metcalfe principles and networking effects (as outlined by Trace Mayer).

Quote from: Marvelockg on Today at 10:53:15 AM

Quote from: Odohu on Today at 10:14:24 AM

. Instead of this statement, let us try and put it the right way which is to encourage people to invest amount that can afford to hold for a some years like 4-10 years which is generally suggested in this thread. This also agree with the records that Bitcoin have been making a new ATH every 4 years which is seen as the market cycle of Bitcoin so any investment kept for at least 4 years is bound to generate profits other things being equal.

I think I'm in agreement with this phrase of Investing what you can afford to hold for the long term because it actually speaks volume of the reputation Bitcoin has built over these years and likely, the notion of investing what you can afford to loose might have spring out in the early days of Bitcoin investment when people where skeptical about it. For now, it's mostly for altcoins and meme coin that you can mostly talk about investing what you can afford to loose since they still lack credibility to a large extent.

I don't know if it helps so suggest that invest what you can afford to lose ONLY applies to shitcoins, even though surely bitcoin has stronger fundamentals than shitcoins, so it is possible to actually invest into bitcoin, and I doubt that there are any shitcoins that you really could have confidence investing in them... even though some people do come to conclusions that shitcoins are worthy of investing into.. but seems problematic to consider any shitcoins as 10 year investments rather than something to get into and then to get out of.

Quote from: Marvelockg on Today at 10:53:15 AM

4 years might be the completion of a circle but it's still not an end point to ones investment goal.

4 years seems to be the bare minimum to consider bitcoin as an investment rather than a trade.. and an investor can use 4 years only if they have some specific age or health considerations for not being able to invest longer... ..

To me, it seems that it would be problematic to even consider saving up for a house or to invest into something else to be an investment into bitcoin rather than a trade, even if the timeline might be longer, even though surely there could be ways to consider investing into bitcoin order to be able to leverage the bitcoin investment to start to purchase those various kinds of goods, services and other investments in the future, without necessarily planning to sell all of the bitcoin but instead figuring out ways to balance the bitcoin investment with other consumption and/or investment goals.. so then the bitcoin still ends up providing more options rather than planning to get in and out of it... absent some age and/or health considerations.. .. and of course, people are free to establish whatever their criteria might be in terms of thinking of bitcoin as an investment and reasons to sell it that might be goal based and may or may not account for timelines, which those ways of thinking about their bitcoin might not exactly fit investment frameworks rather than trading ideas.

Quote from: Marvelockg on Today at 10:53:15 AM

At least, if you've invested for 4 years, you should have build an high level of maturity and knowledge about Bitcoin and deciding to leave you investment further than that will then come naturally because you've witnessed almost all the basic market conditions there is to Bitcoin investment.

Learning along the way is good in terms of both learning about bitcoin as an investment, and also we cannot necessarily assume that we are not learning about ourselves over the years in terms of our cashflow management and our psychology and various other parts of the 9 individual factors, besides just how bitcoin compares with other possible investments.

Quote from: Sim_card on Today at 02:58:36 PM

Quote from: summonerrk on Today at 12:01:47 PM

I would also like to add that you should always remember that you need to leave money for everyday expenses, because many investors make a mistake: they want to quickly accumulate more Bitcoins, and therefore allocate too much of their Fiat for buying at DCA, after which they do not have enough to live on. And they have to withdraw cryptocurrencies back into fiat, and such an approach partially ruins the idea of measured and correct accumulation of digital gold.
It is also imperative not to forget about security in terms of programs and phishing.

This is one of the reason that a new investor should only buy bitcoin with hi discretionary income that he will not need for a very long time in order for him to be able to continue buying bitcoin weekly or monthly regularly and hodli for long with DCA method, persistently and consistently for 4-10 years and above. It is good that before buying bitcoin you should be able to figure out how much is your discretionary income first, so that you don't go and use part of the money for your monthly expenses and needs to buy bitcoin to avoid you from gambling thinking that you are investing.

Even though you are not technically incorrect, I don't really like your suggesting that we have to know our discretionary income first before investing into bitcoin and then to cause an impression that it should be really difficult to figure out whether or not we have a discretionary income.

Sure, many normies suck when it comes to various aspects of cashflow management, even though an overwhelming majority of normies should have some general ideas about their discretionary income, so they would be able to get started buying bitcoin nearly right away with their general ideas about whether or not they have an extra $100 to buy bitcoin this week (and to keep that invested into bitcoin for 4-10 years or more). Of course, the more aggressive that any of us is going to be with our bitcoin investment, then the more detail-oriented we are going to need to be in managing our cashflows and making sure that we don't make mistakes and perhaps that we have various cushions in case we make some mistakes. We can learn a lot of those skills as we go, and likely we are going to need to learn those various kinds of skills as we go especially the more that we invest into bitcoin and potentially the more our bitcoin investment portfolio grows in value then we are going to need more skills to manage it and to make sure that we don't lose it or sell it too soon and/or to make sure that we are feeling financially and psychologically able to manage it. We can learn matters (and probably we need to learn these matters) along the way rather than expecting that we need to know any of this in advance beyond just having some ballpark idea about whether we have an additional $100 that we are able to buy bitcoin with this week without expecting to get it out for 4-10 years or longer.

Quote from: Sim_card on Today at 02:58:36 PM

It is also important for an investor to set up an emergency funds which is a back up to is bitcoin investment so that when a real emergency comes, he can use the money to take care of it, instead of selling his bitcoin to take care of an emergency.

Emergency funds (and other forms of back up funds and honing various aspects of cash flow management) does not need to be established prior to getting started beyond merely having some basic ideas about whether the newbie BTC investor has extra money to buy BTC and to hold for 4-10 years or longer or not.

Quote from: Sim_card on Today at 02:58:36 PM

Quote from: summonerrk on Today at 12:01:47 PM

cryptocurrencies

We are talking about bitcoin and not cryptocurrecy because using that word means that shitcoin is the same with bitcoin which can be misleading to newbies.

Good point. Hopefully no one is fucking around with shitcoins or talking about shitcoins in this thread, and if there were some intention to talk about bitcoin, then the word bitcoin should have had been used rather than using a vague, misleading and perhaps disingenuine word such as cryptocurrency.