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 totally agree with you here. Being aggressive or whippy on our invest should be done based on how well we have position ourselves in terms of our cashflow. If we invest overaggressive without sorting out how we can manage some aspect of our life like lifestyle, debt management or other things we are may be addicted to spend with the reserve funds it may result to nothing in the end.
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.
Diversification is good but it can be difficult for those investors to know when they are ready to start diversifying into another asset. From my experience they really need to know how solid their bitcoin Porfilio to ensure they are comfortable in holding it as long as they want to regardless of price swings. Not just any amount is possible. Remember when they are diversifying, they can keep accumulating bitcoin but this time the percentage of their discretionary income in bitcoin will be less. After checking the solidarity of their bitcoin portfolio i feel the next thing, they should know is how stable their income is to keep up with the diversification so that it won't stretch them too thin. Diversification can be a burden when the source of discretionary income is shaky, it will take cashflow confidence to have a consistence diversified portfolio. The last thing i did, was to figure out if the reason i am diversifying aligns with my long-term goals. This allows me to stay focused knowing full well that my bitcoin is the most priorities. The reason why i started diversifying into other asset is because in the long run i can choose to take profit from those other investment while i leave my bitcoin to keep running longer.