I think that a lot of what you are suggesting relates to managing bitcoin position size, and the skills and/or the knowledge of the risks do not need to be known in advance in order for anyone to get started investing into bitcoin. Anyone should be able to get started investing into bitcoin with the ONLY criteria being that they have a discretionary income, and the more uncertain or scared they are about investing into bitcoin, then the more of a whimpy start that they would take and the more confident and/or bullish they are, then the more aggressive that they would be, and they can learn how to go from being whimpy to being aggressive as they are figuring out how to make sure that they have good cashflow management systems in place.
That is interesting perspective on getting started with Bitcoin investing.
You are saying that to start investing in Bitcoin we only need money we can afford to lose and we do not need to know about risks or how much to invest upfront. Your idea is good that people can start small if they are nervous and then invest more aggressively as they learn to manage their money.
While it is good to learn by doing and start small many people would say it is really important to understand risks and how much Bitcoin price can change before we begin. And when we start with small investment we will learn slowly and understand that how market move and also calculate the right time to buy. Sticking on plan is really important means we should never forget the strategy which we have started in the early stage. It can be changed with the passage of time but if this is still working good so we should stick on it.
Most people have the most basic skills to get started investing into bitcoin, yet at the same time, no one really wants to get into an investment and lose money, and so bitcoin is a very good investment as long as the person has a 4-10 year or longer investment time horizon, which will help them in terms of not focusing on getting rich quickly, but instead building cashflow management systems that help to keep them in the game, 4-10 years or longer down the road they will still be in the game and they maybe are tweaking their systems along the way to keep building, perhaps even being aggressive, while at the same time making sure that they are not going overboard in terms of making sure that they not only stay within the bounds of their discretionary income but also making sure that psychologically they are not investing money that they cannot afford to lose, psychologically... ...
so for example, we might have a person who finds out about bitcoin and just on the surface, they know that they have enough money to invest into bitcoin at a rate of $100 per week, yet on purpose they start out with $35 per week, and they
figure out their 9 individual factors.. and sure maybe after a few weeks or months they are able to increase their investment into bitcoin because they also figure out better their cashflow management systems and they start to put their systems into practice. .and some folks will be faster learners than others and with more experiences than others, while at the same time, they may even figure out ways that they are able to increase their discretionary income (by increasing their income and/or by cutting their expenses), which after several months they might even get up to investing $100 per week and maybe even more than $100 per week based on their both increasing their discretionary income and by improving their cashflow management systems.
So establishing position size can do a lot to address fear and respond to perceptions of risk, and if we realize that we can lose most or all of our investment due to either execution risks and/or due to risks of the asset, then at the same time, we can make sure that we are not investing beyond our competency and/or our level of knowledge, but that self-imposed limitation does not mean that we stay on zero, wait or study the matter, but instead we get the fuck started as soon as possible, but we adjust our weekly BTC purchase amount down to a level that is comfortable for our own finances and psychology, and then as we learn and we get more comfortable, we can slowly ramp up our weekly investment amount and/or any other ways that we might consider investing into bitcoin such as lump sum and/or buying on dips... to the extent that we might either realize that we have other funds that could go into bitcoin or that from time to time, we might realize that we have extra cashflows or other extra discretionary income that could be considered to be placed into bitcoin as compared with places that we would have previously (before our starting with bitcoin) would have had considered to be appropriate places to put our extra money.
When it comes to investing in an asset as volatile and complex as Bitcoin, it's always crucial to deploy a well thought out approach, especially for those who are relatively new to it, and your post well highlights this. Many people often encounter problems when starting their accumulation journey because they fail to realize the best way to do so. It's always safer to begin one's accumulation with an amount that's very manageable and as you advance further and become more comfortable with the investment amount you're currently using, then you can think of gradually increasing your pace or amount as you improve your cash flow management systems, as this is a pretty great way to potentially mitigate certain investment risks and also boost more confidence in your investment.
If we are also to consider or address the fear factor as well as responding to perception of risks, it's always crucial to establish a position size that pretty much aligns well with one's current financial situation, as well as risk tolerance level. Because we tend to develop a sense of confidence and control in our investment decisions when we start small and gradually increase our investment amounts as we proceed further and discover that we have become super comfortable with our current pace.
It's also very crucial to acknowledge the potential risks associated with Bitcoin investment, particular the asset risks and the execution risks. Although, this shouldn't hinder an individual from getting started with his accumulation, but rather they can get started with a more conservative approach, like getting started first with an amount that's more comfortable with their current financial and also psychological situation.
The more individuals advance further in their accumulation, the more they gain more experience and learn new things about the modus operandi of the investment, the more they also get the chance to make certain assessments and necessary adjustments in their strategy, maybe by potentially increasing their accumulation pace or even exploring other accumulation strategies that suits and aligns more with their current financial goals and situation. The most important thing is getting started first and then adapt, rather than waiting for the perfect time/knowledge (which may likely not even come) or when they're finally sure about starting.
Your thoughts and emphasis on the importance of discretionary income and a good cash flow management system is also very spot on and worth noting. Because individuals can potentially use these aspects to ensure that their investments are actually sustainable and that they also align with their current financial goals/situation.