Quote from: Sim_card on Today at 02:55:26 PM

Quote from: Glen Hoddle on Today at 02:38:53 PM

Quote from: retreat on Today at 11:56:30 AM

Quote from: Publictalk792 on Today at 02:43:12 AM

Investing in bitcoin needs to be tailored to each person needs. While DCA strategy can work well for some. Each person has their own financial goals and comfort level with risk and investment timeline. It is also important to remember that people can change their investment approach as they learn and become more confident. Your example of someone starting with DCA and then switching to lump sum investment after learning more is great example of this. At the end most important thing is to find investment strategy that works for each person and allows them to buy bitcoin at their own pace without putting their finances in danger.

Because in Bitcoin investment, methods such as DCA or lump sump, it is just a person's approach to how to invest in Bitcoin and how they can adjust it according to their financial condition and their confidence. In the long run they can change their approach to investing in Bitcoin, they can choose DCA or lump sump, whichever is free, the most important thing is how they set their finances so that they can invest regularly and not sell just for short-term profit.

A person is most likely to benefit the most if they invest in Bitcoin initially and keep it for a long time. The investor will be able to sustain his investment for a long time by diversifying little by little, which is why the DCA method is most important for both every holder and every investor.

I don't understand what you mean by diversify little by little, because from what I understand about the word diversify, it means to stop your bitcoin investment and put the funds that you are using to invest in bitcoin into another asset like stock, bond, gold or real estate.

A new investor shouldn't think of diversifying into other investment but rather he should stay focus on building ans growing his bitcoin portfolio overtime, because bitcoin investment is already outperforming other kind of investment both physical and digital in the market. Trying to diversify might make you lose focus and make thw wrong decisions that will lead to regrets. It is when you have accumulated more than enough Bitcoin and you feel you are not secured with only bitcoin, you can diversify into bonds, properties, cash equivalents and stocks.

Glen Hoddle might not be wrong in his way of considering diversification.

Surely many of us know that if you come to bitcoin and if you already had other investments at the time that you come to BTC, then you are in a different position as compared with someone who comes to bitcoin and who has no other investments. Such person who comes to BTC with other investments might choose to just retain those other investments and start to add bitcoin to his investment portfolio or he might choose to reallocated out of some of his already investments to allocated into bitcoin.

It can be unclear at what point when diversification might start to seem to become practical and/or prudent - or even necessary. There is no solid demarcation regarding when diversification might become necessary, practical and/or prudent, even though it surely might not need to be considered as important for a new investor who might merely start to DCA into bitcoin and who does not have some kind of a large lump sump in which to start investing.

Many of us have likely come to realize that so many other types of investments (non-BTC investments), that had historically been considered to be non-correlated to each other, are now (in recent times) having so much intertwining with current dollar debt systems, their performance become proxies for the dollar's performance and the performance of debt systems... so in other words, many traditional asset classes have been perverted by the dollar in various ways that sometimes can be difficult to peg, including that assets might have high dollar value based on their reliance on debt rather than fundamentals - referring to those traditional asset classes of properties, equities, bonds, commodities cash/cash equivalents.

It could be that a person who starts out ONLY investing into bitcoin and cash (and who has no other investments) might well start to feel some needs to diversify beyond cash and bitcoin even while continuing to build his bitcoin portion... because once a person might get to 3-6 months or more cash on the books, there might be some desires to cause some of that cash to be "working cash" rather than just sitting there on the books merely as a form of quick liquidity, and so my thinking is that the larger the bitcoin holdings get, then it becomes logical that the cash part would continue to become larger too, but the bitcoin investor might not want all of that building up to be held in cash..

so how much BTC does someone need to have before their offset of cash might start to seem to be getting too large and some of the cash needs to be moved into other kinds of assets? Whether liquid or otherwise?

Guys are likely going to arrive at differing balances in regards to how he considers where he is holding value, including various forms of cash, various forms of liquidity and/or various forms of hedging certain assets against each others and hoping to achieve some non-correlation in the ways that he is holding various kinds of assets, and even including whether he is valuating his BTC based on spot price (which seems a bit unreliable, but guys are going to do it.. and if we buy or sell our bitcoin, we will be doing it at spot price, not 200-WMA price - hopefully) or if he might valuate his BTC based on bottom prices, something like the 200-WMA.

I believe that it would be a bit difficult for a guy to get to a point that his BTC is several years of his income/expenses (let's say 5 or more years - evaluated in accordance with the 200-WMA) in which he might not start to become nervous to ONLY have all of his networth in bitcoin and cash and no where else.. and such a guy may well start to get nervous about not having his wealth spread out, so there is likely going to be a point for anyone where it starts to feel logical to diversify out what he is holding beyond just bitcoin and cash.. and surely that point is likely going to be different for each person, even if the person might start out his investment in ONLY bitcoin and cash and get each of them built out to 6 months of expenses (based on the 200-WMA, perhaps?) before starting to consider the diversification matter..

By the way, when I came to bitcoin in late 2013, I already had more than 20 years investing, so I already had built out a somewhat diversified portfolio before adding bitcoin into the mix. I have no problem with the idea of starting out ONLY investing in bitcoin and cash but at some point there is comfort in having assets in other places besides just bitcoin and cash, and it may well be once both the back up funds and BTC are each in the ballpark of 6 months or more of expenses/cash.. but surely guys can choose differing levels of concentration, and surely there are guys who consider it to be a complete waste of time to invest into anything besides bitcoin, which there could be justification in that perspective, too.. even though it would make me a bit nervous.. yet at the same time, there may well be people who might have some difficulties to establish some other investments that are sufficiently reliable to be safe.. so individual circumstances and access to other investments could cause some issues regarding availability of other investments, which may well be part of the explanation why so many folks get lured into various shitcoins.. which may sometimes end up hurting more than helping in part of the rational of diversification is meant to preserve wealth once it built up and perhaps as it is building up.

Quote from: Roseline492 on Today at 04:01:01 PM

Quote from: Sim_card on Today at 02:55:26 PM

Quote from: Glen Hoddle on Today at 02:38:53 PM

A person is most likely to benefit the most if they invest in Bitcoin initially and keep it for a long time. The investor will be able to sustain his investment for a long time by diversifying little by little, which is why the DCA method is most important for both every holder and every investor.

I don't understand what you mean by diversify little by little, because from what I understand about the word diversify, it means to stop your bitcoin investment and put the funds that you are using to invest in bitcoin into another asset like stock, bond, gold or real estate.

You are wrong, diversification does not mean you should quite the one you are doing at the moment, diversification means as you are already investing on one side or Bitcoin and you want an assets that would be on different side, for instance you are investing on Bitcoin currently and you decide to also open a business you would be running on daily basis that is also called diversification. Sometimes when people hear the word diversification they mostly don't see it as having different things because what they understand it to be only one. However if perhaps diversification is one investment what then do we call two different investment owners?.

You are correct that one of the ways of diversifying could mean entering into some kinds of a business relationship... and many times, diversification might just mean adding one new kind of investment (or possible income flowing source) once in a while.. perhaps every few years adding some new asset or even like you said a business relationship (that may or may not be passive), and then after several years of adding a person could end up having 4-5 or more areas in which his investments are diversified into and some of those areas might be active or passive (and some might be losers and some might be completely unnecessary to be in). A person might have had started out ONLY being invested into bitcoin and cash and perhaps even just had only bitcoin and cash for 4-10 years or more.. depending on how long it might take to build up the bitcoin investment and the various cash back up funds...and then at some point decide to diversify (which may or may not be smart, yet people have to decide those kinds of things, and sometimes they find good balances and other times they make poor choices about where to put their value).

For sure sometimes early investors might overly prioritize diversification, and if they only have $10 per week or even $100 per week, it might not make very much sense to diversify that amount since it would end up in a lot of dilution of the available amount, and perhaps unnecessarily too much loss of focus in terms of what they might be trying to achieve.. so in the beginning there may well be emphasis on focus and growth, but as the growth gets larger, the focus might be on employing various ways to protect the investment in regards to its earlier growth, and I am not even saying that growth and protection cannot be pursued at the same time, since each person can figure out where they are at how much concentration to have in any particular area for either their balancing on the side of growth or balancing on the side of protection.. and the answers will likely change for some one who is 2-3 years into investing as compared to someone who is 5-10 years into investing as compared to someone who is 10-20 years of investing as compared with someone more than 20 years into investing.

Quote from: Callido on Today at 04:59:35 PM

Quote from: Sim_card on Today at 02:55:26 PM

[edited out]

Diversification is a method applied to multiple investment in order to share the risks between them. Not everyone can be contented with Bitcoin investment alone, some will need an extra and faster flow in profits, not putting all they get together helps them share the risk when either Bitcoin goes dip or the diversified sources becomes not profitable.

You sound like a true shitcoiner and a degenerate gambler. We are not talking about trading in this thread, even though you are referring to diversification as if it were a reason to get into shitcoins. It sounds like you have been absorbing all of the shit-coiner talking points.

Quote from: Callido on Today at 04:59:35 PM

I agree when you say newbies should focus more on maintaining Bitcoin investment, there is need for investment to get matured before thinking about diversification, Bitcoin is less risky and requires more portions for holding so when the bull season comes it will give huge returns, Bitcoin hardly does X1000 like some of this projects does, this is the need why some investors choses to diversify.

At least you seem to understand some aspect of the angle about bitcoin first, and hopefully with your shitcoining and trading your are able to limit your involvement in that crap to less than 10% of the size of your bitcoin investment.

I know that with traders and shitcoiners, they just cannot resist the need to be in some other "promising project," so many times they don't have enough will power to limit their gambling to less than 10% of the size of their bitcoin holdings... I cannot tell from your post if you have figured out some decent limitations for yourself, even if you seem to recognize bitcoin as the best.

Quote from: MusaPk on Today at 06:47:45 PM

But I think a new investor who is coming from other areas like stock or real estate might not have that much confidence in Bitcoin like a person who has sent some time in Bitcoin. He will take his time before he fully understand the benefits of investing only in Bitcoin.

For sure, a person who already has other investments will come to bitcoin differently than someone who is new to investing and does not have any other investments.

A person coming to bitcoin with other investments might choose to just add bitcoin to their investment portfolio or they might choose to reallocate out of their other investments into bitcoin.