For accumulating long-term investments, an investor should first have a good Knowledge of his financial situation.
Of course Before one will think of going for long term investment first you will need to examine yourself very well before you will think of making any investment plans. Because the journey is very far, moreover this journey is not the one you will go and succeed just within a couple of months No" rather it will take some years before it will yield a good profit, except you don't intend to get enough profit from your investment. That's when you can decide either to cut the journey off or you will proceed in getting to the final destination.
Many of us like to consider a bitcoin investment journey as 4-10 years or longer, and sure it is important to consider if we are able to commit to 4-10 years or longer, yet we still could get started in bitcoin without making such a commitment to 4-10 years or longer, but tentatively be considering that we may well be able to commit to 4-10 years or longer at some later point down the road.
Another thing is to figure out what our bitcoin position size might be, and surely it could make a difference if we are being aggressive in our bitcoin investment orif we are being whimpy, which also gets back to potentially sorting out various aspects of ourselves and our cashflows so that we might be able to better determine the extent that we are even able to get aggressive in our bitcoin investment approach, versus if we might have other investments that we might be considering to involve ourself in as well.
There are
9 individual factors that can be considered in the context of investing into bitcoin, whether we are newbie investors or if we maybe have been investing into bitcoin for a whole cycle or more.
I personally believe that it is not important for any new investor to invest into anything other than bitcoin when they are just getting started investing, so they might well start out with only having investments of bitcoin and cash, and then they can perhaps work out their bitcoin accumulation path from there and at some point down the road figure out if they might choose to diversify into other assets beyone bitcoin and cash.
When a newbie wants to start Bitcoin investment considering 4-10 years or longer investment should be something that he should be thinking about if your investment plan is below 4 years then you are not an investor but a trader, and yes you are right JJG it may look difficult when we decide to start accumulating and holding for 4-10 years or longer but just like you said we may well be able to commit to 4-10 years or longer at some later point down the road and that's because as we keep our investment going we will see more reasons to continue.
Yeah you are correct JJG it is very important we figure out what our bitcoin position size might be because it will help us a lot in determining how aggressive we should go in our Bitcoin accumulation journey, someone who is able to figure out what his bitcoin position size might be will surely fine it much easier than someone who has not because figuring it out helps you map out your plans very well on our to reach that Bitcoin position size.
i must commend you Sir on your well given explanation on those 9 individual factors that can be considered in the context of investing into bitcoin it is a very helpful write up.
I agree with you that it is not important for any new investor to invest into anything other than bitcoin when they are just getting started investing, for me diversify into other assets beyone bitcoin at an early stage of there investment will surely cause them distraction which may even lead to them becoming slow in there accumulation journey so diversifying is better done when they have reached a certain stage in there accumulation.