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I don't think this argument is supposed to get this heated with such words. Everyone has a believe and reason for taking any action or embarking on any investment.
As people who believe they're pursuing the same goal, the right thing is to correct the notion about your mate's mentality that you feel is wrong. Traders don't have same mindset with investors and there's no way you would want to impose your Investors mindset on a trader. The best thing is to suggest and tactically make him see reason to hodl for long.
The best way to win argument or get someone to buy your idea is by making them see reason to do it. I believe in holding bitcoin for as long as possible because I don't see it as a poverty alleviation scheme but as a retirement plan. Someone that sees bitcoin as a get rich scheme will always exhibit a traders attitude. What you could do best is either point the reason to focus more on retirement plans than the moment.
An investor is right likewise a Trader. What matters is understanding that bitcoin should be aimed at holding for long to serve as a retirement plan which is why we advocate for a long time holding above 10years.
There is nothing wrong with transacting with bitcoin, even if you are in your early BTC accumulation stages, you can spend and replace in situations that you might have opportunities to transact with bitcoin.
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Yes sir, first of all, an investor should collect enough information. And he should think about what he is investing for. In a new situation, an investor gets scared, a kind of fear is created in his mind. He thinks more negatively than positively and is afraid to invest. My advice to them is that investment is not a place for fear, investment is an aspect where you can improve your position, and doing enough research and analysis before your investment will help ensure a safe and profitable investment.
One of the most important things is getting started. You don't need to research in any extensive way prior to getting started investing into bitcoin. The main thing that you need to know is whether you have discretionary income or not, and do you have $10. If you have $10 then you can get started. You can research and figure out the details as you go, and just pick a small starting amount until you get more familiar with bitcoin such as where are you going to source your coins and then at some point, you would be planning to move them to self-custody, but you might start out by researching into places where you might buy if it might be an exchange or directly from someone you know or going to a bitcoin meetup. If you have $10 you can get started, and then research and learn more about bitcoin as you go. There are a lot of aspects of bitcoin, but you don't need to know all of that before getting started, but you should know whether or not you have $10 extra that you are not going to need to cover any of your expenses.
Like you suggest, even a low amount invested into bitcoin is better than nothing in terms of also inspiring some reasons to investigate further into the matter. Many of us have more inspiration to investigate when we have begun to invest, even relatively small amounts of value.. and surely as we learn more and more about bitcoin, we may well end up getting inspired to invest more, to learn more and also to figure out ways to improve our discretionary income by increasing our income and/or decreasing our expenses.
That will be hundred times better making investment on Bitcoin by DCA following scheme even then that is so small amount instead of investing on shitcoins.
If we just look at a normal example or calculation, if we invest in bitcoin through the DCA scheme at $10 per week for three years, then it is possible to make more than double the profit here. ----
https://dcabtc.com/And besides, if we keep our funds in the bank, the value of our funds will continue to decrease due to inflation. Although the bank will give us an interest, we will be able to gain several times more profit here than the bank's interest. Just need to have patient and hold with not being affected by the fud's.
I doubt that we should expect profits, especially in our first whole cycle of investing into bitcoin, our holdings may or may not be in profits... so we should not be focused on profits, but instead focused on building our bitcoin holdings for the long term... hopefully 4-10 years or longer. Even long term we are not guaranteed profits, yet of course, we invest into bitcoin with expectations that it is an asymmetric bet meaning that the most that we can lose is 100% as long as we don't use leverage, and that we consider there are a variety of upside scenarios in regards to bitcoin having a lot of strong fundamentals related to its scarcity and its censorship resistance characterizations, in which bitcoin still seems to be in its quite early stages of adoption including the ongoing expansion of its 7 network effects (
as outlined by Trace Mayer).
Investment rules don't apply to newbies alone it cut across to all investors both old and new, it's all about investing rightly within ones financial capacity with which they can be able to survive with what's left after removing their investments funds from the total amount they earn in either weekly or monthly.
Another thing which is my personal opinion is that the amount with which we invest with monthly doesn't necessarily have to be static. As in, you can decide to invest $10 this month and probably put in $20 the next month thereabout depending on how things turned out to be for you financially within the previous month. Because there's a way you can spend frugally and do have some extra bucks left into the new month
I understand what you mean by not investing with a specific amount weekly or monthly but that is not of our own doing, because it's your discretionary income that will determine how much you are to invest in bitcoin every week or month. For instance, someone with $12 discretionary income will not be able to invest above his limit. Such person cannot invest $20 or above $12.
@Ruttoshi, I think we're on same page here except that you think that our discretionary income that will determine for us the amount we can be investing weekly or monthly, whereas it's the investor that should decide that base on what he earns and not the other way around. As a bitcoin investors with a DCA method of investing there's a way you spend on essentials only in a week or month and you can be able to save up higher amount as discretionary income to invest more than the amount of the previous month. I don't know if you do understand me. You can considerably increase your limit by how your spending on certain occasions.
As Ruttoshi mentioned you cannot invest in bitcoin beyond your discretionary income otherwise you will be gambling with money that you need for expenses or trading which is also a form of gambling.
If you are investing for the long term rather than trading then your discretionary income is the maximum that you can use without devolving into gambling/trading. All that discretionary income means is that it is the extra amount of money that you have after accounting for your expenses. There could be times in which a person might actually realize how much discretionary income that he has since there could be ways to increase income or cut expenses by purposefully choosing to work more or to reclassify priorities in regards to expenses that might be present.
Of course you can have various kinds of cash cushions that you have built up from your discretionary income that you carry over from one pay period to another pay period, so you surely can have control over how much you BTC you buy at various points in time... There are a lot of ways that guys can be creative with their money, and they can even leverage future income to buy bitcoin with that, and some of the strategies are more risky than others, yet even with a loan, if you know that you have good source income to service the loan and other kinds of funds that you can service the loan, they you still could recognize and appreciate any additional risks and/or costs that you might be putting on yourself in order to take the loan.
Yes sir, first of all, an investor should collect enough information. And he should think about what he is investing for. In a new situation, an investor gets scared, a kind of fear is created in his mind. He thinks more negatively than positively and is afraid to invest. My advice to them is that investment is not a place for fear, investment is an aspect where you can improve your position, and doing enough research and analysis before your investment will help ensure a safe and profitable investment.
Usually investors who still have fear when wanting to invest are novice investors who still do not know much of the best assets he can take to run the investment. So that the first thing they have to take to eliminate fear of this is to increase their knowledge of the best assets such as bitcoin and also how to invest quite comfortably without having to have an excessive burden on his own mind.
Because fear of something that has never been tried is usually caused by a very low level of knowledge so that every investor who still has such a taste in the mind must find a way so that the taste no longer appears when they have invested or want to invest in one of the assets like Bitcoin. Because if in Bitcoin still has the fear of investing, of course the investor is still very minimal in his knowledge of Bitcoin.
Fear can be addressed by position size too.. so if we might come to the conclusion that we need to invest into bitcoin, so then we get passed the question of whether to invest, and so then the next question is about position size, and newbies get so worked up about needing to invest BIG, when that is not true. It is much better to just get started and to start very small as you are learning and to increase your level of investment as your level of confidence grows. Putting some money in will also help to facilitate the learning process.
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What I think makes people to fear too much is putting too much money into Bitcoin at once. In other words, investing above your discretionary income will always make you to fear because you invested money you are supposed to use for other things into Bitcoin.
Exactly. Getting started
does not mean that "you gotta go BIG." Many newbies would benefit from starting out slowly and perhaps even spreading their initial entrance over several months. Consider how much they might want to start with, and even spreading that out over several months. Maybe thinking that they can invest $10 to start, and maybe they have $2,600 that they could invest over 26 weeks, but they decide to start out with $10.. or maybe they decide to start out with $600 and then spread the other $2,000 over the next 26 weeks... so they can start out small relative to their budget and then figure out.. and sure some newbies are not going to exactly know their budget, so they might have to figure out some more aspects of their personal finances, yet they don't need to figure out their personal finances before getting started... all they need to figure out about their personal finances in the beginning is do they have $10 to get started or not.. They can work out the detail of their personal finances as they are going. Another thing is that I am not suggesting just sloppily and blindly investing into bitcoin, since each of us has responsibility over our own persons and we also have to figure out our budget and psychology (including our
9 individual factors), but we don't need to figure out all the details before starting..