Being overly optimistic about investing can cause problems for an investor later. For example, if a person is optimistic after investing that his investment will make $4 or $5 profit immediately after investing or if he thinks that his investment will never go down. If someone thinks like this, he will be forced to sell his investment later. Because when he sees a decline in the market, he will get scared and then he may decide to sell his investment..
This may be possible, because if someone invests $200, there may be a profit of $4-5 in a short period of time. Now if you expect to make such a quick profit you will not be a successful investor. If you expect profit soon after investing then it is not wrong to call you a trader, to be an investor you have to buy bitcoins and hold on for long term. Now it is normal for the market to fall, so don't despair here. If one is disappointed to see the market down, he will not be able to hold for a long time, and if he cannot hold for a long time, he will not be a successful investor.
Some people are very funny, imagine investing $200 and then getting $4-5 in a short period as profit, this doesn't make any sense because if someone can afford to invest $200 then what is $4 or $5 profit? This explains lack of understanding because how will someone risk $200 just to make this little profit and this set of investor always sells their investment when the price is going against their wish. Long time is always the key to every successful investment and is not like some Investors don't know or understand but they decide to go the wrong direction.
Sure there is a product of time and quantity in terms of the amount that any of us is able to invest into bitcoin and to go through the process of the investment potentially being able to serve some kind of a purpose - which surely with something like bitcoin it would seem strange to invest 4-10 years or more and then just cash out.. even though surely some people end up doing something like that rather than maintaining bitcoin as an investment once they built up a position.
Part of the way that any of us could attempt to project forward is to consider how much of our income we actually might be able to put into bitcoin over time, whether that is 5% to 25% or some other amount, and then to figure out how much of our income we might be able to put into bitcoin over time. Surely there could be lump sum amounts to start out or at various points along the journey, and surely there could be some possibility that if we let our bitcoin investment build up and play out for a while, then we have a product of both what we put in and the hope that the BTC that we had bought may well have had gained in value over time.. It is not guaranteed that the bitcoin that we accumulated would have had gained in value, but surely it could become possible that both with the combination of the amount that we put in and the gain in value, then we might well could have had been able to start to withdraw from the bitcoin to partially or fully replace the income that we might get from work or other ways that we get income could end up being supplemented, replaced and/or insured against in the event that those other sources of income could dry up. So in the sense that bitcoin could replace our income, then it becomes important to guard large portions of it.. maybe even being careful to have an overwhelming majority of our coins (such as 70% or more) in self custody and hopefully lessening (or mitigating) our exposures to 3rd party risks (such as custody and/or even transactional risks).
Some guys cannot resist taking short term profits, which might relate to their not necessarily understanding and/or having confidence in terms of holding value in bitcoin, which surely is understandable that guys are going to have those kind of discomforts to even get used to how to hold bitcoin, to protect it and how much value to hold in it in terms of comfort levels that it is sufficently safe in the various ways that it might be held and/or backed up.
Some guys might come into bitcoin and not really be sure if they are going to have an income for 4-10 years or more so that they can continue to hold bitcoin and/or to pay for their expenses through their income, and surely they may end up investing into bitcoin and then needing to figure out how to continue to earn income so that they do not cash out of too much of their bitcoin too early, and no one is saying that is it easy to even be able to hae systems in place in order to not cash out too much too early.,. since there may well be guys who hardly have any income, savings and/or other investments, and if their bitcoin holdings becomes one year or more of their income (the cost of their expenses) they may well be tempted to tap into it.. even though it may well be better for their own good if they can get their bitcoin up to 10-25 or more of their annual income/expenses.. and also measuring the value of their bitcoin from bottom prices (such as the 200-WMA) rather than getting distracted by spot prices, even though surely any sales would end up happening at whatever the BTC spot price happens to be a the time of any sales..
Being overly optimistic about investing can cause problems for an investor later. For example, if a person is optimistic after investing that his investment will make $4 or $5 profit immediately after investing or if he thinks that his investment will never go down. If someone thinks like this, he will be forced to sell his investment later. Because when he sees a decline in the market, he will get scared and then he may decide to sell his investment..
This may be possible, because if someone invests $200, there may be a profit of $4-5 in a short period of time. Now if you expect to make such a quick profit you will not be a successful investor. If you expect profit soon after investing then it is not wrong to call you a trader, to be an investor you have to buy bitcoins and hold on for long term. Now it is normal for the market to fall, so don't despair here. If one is disappointed to see the market down, he will not be able to hold for a long time, and if he cannot hold for a long time, he will not be a successful investor.
Some people are very funny, imagine investing $200 and then getting $4-5 in a short period as profit, this doesn't make any sense because if someone can afford to invest $200 then what is $4 or $5 profit? This explains lack of understanding because how will someone risk $200 just to make this little profit and this set of investor always sells their investment when the price is going against their wish. Long time is always the key to every successful investment and is not like some Investors don't know or understand but they decide to go the wrong direction.
Imagine making a 2-3% gain in an investment and calling it a major profit, no wonder bitcoin traders are never successful, they cash out on something this small and they start acting like they completely understand the bitcoin market but the truth is that they understand nothing, an investor will most likely make at least 100% of their investment at the end of their investment period which can be around 10 years, even more if their investment stays for a longer period of time and the benefit of this is that they don't cash out on everything like a trader would, an investor will just cash out on a percentage of his/her profit and investment continues, this is what makes investing in bitcoin 100% better than trading in it.
The power of compounding value can be quite amazing. .which is the idea that over time there can be doublings built upon doublings.. and sure it could take several cycles to go through a few doublings, yet surely there ends up being profits that are likely several of the 100% building upon themselves, and even if the person might cash out of some of his bitcoin along the way, perhaps a large amount of value stays in the bitcoin investment in order to potentially keep the doublings going into the future, even if the doublings might become less frequent.
Even
look at my charting out of the bitcoin doublings (compounding value) since 2015, and we already have 8 doublings and we are going onto 9 doublings.. so 8 doublings is 256x and 9 doublings is 512x.
Of course, these days we are staring out with a much higher BTC price, yet at the same time, there is still the product of time that likely has to play out with any investment and in order to really appreciate the power of compounding value.
This may be possible, because if someone invests $200, there may be a profit of $4-5 in a short period of time. Now if you expect to make such a quick profit you will not be a successful investor. If you expect profit soon after investing then it is not wrong to call you a trader, to be an investor you have to buy bitcoins and hold on for long term. Now it is normal for the market to fall, so don't despair here. If one is disappointed to see the market down, he will not be able to hold for a long time, and if he cannot hold for a long time, he will not be a successful investor.
If your capital is only $200 and you think that you have no other capital than this $200 that you will invest in Bitcoin, then you do not need to invest in Bitcoin.
Your entire capital won't necessarily go into footing your bill, you are bound to have a bit of left over which you can use to invest in bitcoin, you still don't even have to invest all of this discretionary funds into bitcoin, still splitting it into percentages and investing a part of it in bitcoin works too
Yep, each of us likely faces ongoing decisions in regards to how aggessive that we are able to be on an ongoing basis in terms of how much of our discretionary income that we want to (or are able to) dedicate towards bitcoin investing rather than serving our current wants and needs. They are not necessarily easy choices, so for example, maybe we are developing relationships, and we know that a 2-5 times a month our partner (spouse) wants to go out to eat, and each time it costs around $100.. and we know that in order to preserve the relationship we have to engage in some of these kinds of activities and/or expenses, yet at the same time, there may be ways that we can try to cut down on the expenses in terms of frequencies and/or amounts and still come to some kind of an agreement that still preserves the benefits of the activities... and so we can have varying expenses like that. .and even something like knowing that we need to buy a new phone, but we might be able to figure out some ways to save money on it or to get it used rather than new or to defer the expenses for a bit of time... and so the point is that our level of aggressiveness in bitcoin investing can have real world consequences both in terms of current expenses but also in terms of future circumstances, and surely we might have some expenses that will improve our income, so the expenses end up paying for themselves, and we have to be careful that we are able to differentiate between expenses that might have pay outs that are sometimes difficult to know exactly.
Rather, you can buy Bitcoin with your ability every week or month. By doing this, you will see that your Bitcoin portfolio has become very long, which will provide you with financial security later.
Now, in order to achieve the desired profit from Bitcoin, you will have to invest on a weekly/monthly/annual basis.
Not all people have so much money that they can buy many Bitcoins at once and hold them for a long time, but if people buy Bitcoin from the income they earn every day, even if it is a small amount, then in time they will see that they have a good amount of sales.
Therefore, you should invest in the DCA method.
Investing in an annual based probably means saving up for months to invest at the end of the year, this doesn't make sense to me, instead of saving up for investing in bitcoin, why not just invest the money when you have it, delay in bitcoin investment is a financial mistake since you might end up spending that money in something else before the end of the year, the DCA is certainly the way to go but waiting for a year to do it just counts as procrastination to me and procrastination isn't the mindset of an investor.
I, surely, like the idea of investing every week especially for newbies and/or even guys in their first whole cycle of investing into bitcoin, yet at the same time, guys might have some irregularities in their income and/or expenses that makes it difficult to set a budget that they can invest every week... and so there could be a guy who has an income that varies between $500 and $2,500 every month with a usual amount of $1,500 and he may have expenses that vary between $750 and $1,100 with a usual amount of $950.. so he may well feel that he can buy $100 worth of bitcoin every week, but he also has to prepare himself for his variance in income and/or expenses, so he may well decide to invest $40 or $50 every week into bitcoin no matter what, and then have some reserve funds and/or float money that he keeps so that he is able to buy additional bitcoin at various times in the month in the event that his income might be higher and/or his expenses lower than expected.. but he does not spend that extra money on bitcoin until he is sure that he does not need it for something else, yet at the same time, no matter what he is buying $40 to $50 on bitcoin because maybe he even has a fund that is set aside and he keeps replenished that is specifically to be able to buy bitcoin every week no matter what.
[Edited out]
In holding Bitcoin for the long term, an individual should focus on his financial aspects. In the case of investing in Bitcoin, if an investor thinks that he will hold it and see what happens, he should move away from the thought of holding it. One should take one's perspective to such a level that it is not possible to hold it for the long term. There is no such certainty in investing in Bitcoin that can 4 to 10 years, but the longer Bitcoin can be held here, the more the possibility of profit will increase.
An investor will never be able to have long-term trust in Bitcoin if he does not have financial stability. If he does not have a discretionary income. Therefore, it is important to establish trust not only with faith but also with his own structure. It is necessary to create an emergency fund before investing in Bitcoin. You have strange ways of expressing various ideas.
Sure a person cannot invest into bitcoin without discretionary income, yet discretionary income does not need to be stable, even if it would be better for guys to have steady, stable, regular and even a lot of discretionary income, yet many people do not have steady financial situations, yet they still can invest in bitcoin within their abilities and continue to work on improving their discretionary income situation.. and even their steady income situation into the future.. but even some folks might start out investing in bitcoin with steady income, and then they might end up losing their steady income situation and get stuck with sporadic income, which does not necessarily mean that they should sell any of their bitcoin or even that they need to stop accumulating bitcoin depending on their total situation and any back up funds that they have.
Emergency fund also does not need to be established before getting started investing into bitcoin, and it might even be disadvantageous to put off bitcoin investing when someone already knows that he has discretionary income and/or discretionary funds, he may well be better off to get started buying bitcoin right away, even if the starting off amount might be relatively small.
Some folks might first hear about bitcoin and they might have had all kinds of bad habits and debt and messy finances and psychology, and surely they can get started investing into bitcoin, as long as they can determine that they have discretionary income/funds. They suely might not be in a position to start to invest into bitcoin aggressively, yet they still might figure out how aggressive that they are able to be without overdoing it, and surely if they are in a situations that they have made bad decisions in the past, they might need to be careful that they don't end up overdoing their bitcoin investment, and they may well need to work on improving their finances and perhaps their psychological improvement will follow their better organizing of their finances.. and yeah, some of these guys might see that they have enough of an income that they could invest between $100 to $200 per week into bitcoin, yet if their finances are so messed up that they have debts and they have hardly any back up funds and they have not really calculated the specifics, then they may well be better off starting out at $40 per week and then use the remainder of their discretionary money to get their debt situation in a better position and to build up emergency funds and take other actions to get their finances in order before they might be able to increase their weekly purchases of bitcoin up to $100 to $200 per week.
Even though we may well want things to move fast, some guys might have themselves in bad financial and/or psychological situations, and it could take several years for some of these guys to establish investment and cashflow management systems, put them into practice and to get their finances in a position in which they have invested 3 months of their expenses into bitcoin and they also have built up an emergency fund that is equal to or more than 3 months of their expenses. Surely if guys have identified their issue, they might be in a place to increase their discretionary income by increasing their income and/or cutting their expenses, yet there might be guys who are also stuck with the discretionary income that they have because they have already increased their discretionary income within their current abilities and their current situation..so they have to work with what they have..
When Bitcoin fell below 100k, did you panic and sell or did you say DIP and buy? There was a good buying opportunity and Bitcoin recovered in just 1 day. It experienced an increase of over 5% in just less than 24 hours. I don't think people here will panic and sell, but there are so many uninformed people out there that many of them may have fallen into this trap.
When a market condition present itself like this just no that alot of people has been overpowered my the panic mindset to sell everything even at lost, the mentality of uninformed people in Bitcoin is that the moment they made a conclusion on there mind about were Bitcoin will not fall to anything that disrupt that price they thought negatively they starts giving up to sell, so actually that's the difference between an optimistic person with the knowledge of barriers and fluctuation in the price and people who knows nothing but only the optimistic that is always going to be up with no decrease.
Being optimistic is indeed very necessary when we invest in bitcoin, because if we are not optimistic about the assets we have bought, it is like buying an object that we do not know its use. But in my opinion the most important thing that will strengthen us in investing in bitcoin, is actually not just knowing about the fluctuation of the bitcoin price. But about our initial intention to invest in bitcoin. In my opinion, this plays a fairly important role in the sustainability of our bitcoin investment. Because if we already intend to invest in the long term in bitcoin and we have determined a purchasing strategy such as DCA, I think we will avoid panic.
Because basically people who panic when they see the fluctuation of the bitcoin price, it means that those people do not have the right initial intention. Because if the initial intention is to invest in the long term, for example 10 years or more. Certainly before reaching the 10 year period, I think we don't need to care about the price of bitcoin or its fluctuations. Because why, because whether bitcoin is currently going down or up, it has no effect on long-term investors. Because the point is if bitcoin goes down they won't sell it and vice versa when the price of bitcoin goes up. So that's why our initial intention when investing in Bitcoin is very important.
It seems that we would not invest into bitcoin if we were not optimistic about it. At the same time, we can adjust our position size to coincide with our level of optimism.. If our optimism is high then our position size would be relatively high, and if our optimism is low then our position size would be relatively low. Accordingly, there should be no need to invest one way or the other outside of our self-assessment of our level of optimism in regards to the asset (in this case, bitcoin).
Yes, I agree with you that in essence we have to determine our optimism towards an asset like bitcoin based on ourselves and that is indeed very important. Because investing is our own responsibility, so all the risks and everything else we ourselves will feel. That is why optimism towards bitcoin is also certain that the way of interpretation will be different for each person and will not be the same for all. Because everyone has a different understanding. That is why our level of optimism towards bitcoin will also definitely be different. But I personally am really optimistic about bitcoin. The reason I am really optimistic about bitcoin is because bitcoin is truly decentralized and has a very good system. That is why I am very sure that bitcoin will continue to be popular with more people. So because of that I am sure that bitcoin will truly be a future asset with great potential.
O.k... so if you have figured out for yourself that bitcoin is a good investment, and also it has a lot of growth potential because a lot of people in the world do not recognize its value, so in that sense you are early in terms of identifying something that you consider to be ongoingly growing.
You also might recognize that in the short-term, the bitcoin price might not reflect its future value, so in the short term, the bitcoin price can go up and down and not even necessarily accurately reflect bitcoin's current fair present value. So, maybe you did not come to this realization right away, and you have been studying bitcoin for a little more than 3 years (going by your forum registration date - congratulations in crossing into more than 3 years) while investing into it, and you have increasingly become more and more and more convinced that bitcoin has a lot of unappreciated value. so over the years you have become more and more aggressive in your bitcoin accumulation.
Ok... no problem... nothing wrong with any of that.. even though it still seems to continue to be your responsibility and your obligation to figure out how to be as aggressive as you are able to be in your ongoing bitcoin accumulation so that you are accumulating as much bitcoin as you can without overdoing it within your own financial and/or psychological circumstances. We all have balances, and we have personal expenses, and perhaps we have limitations in our income that might be able to be improved upon, and we might even have some things in our lives that we could sell in order to buy bitcoin... .. but then there can also be questions about productive use of time to try to continue to learn about bitcoin or to figure out to increase income or cut expenses and also mental health balance to develop social (and familial) relationships while at the same time making sure to improve and/or preserve physical health.
There surely is some value to identify good places to direct time, energy and value.. and then surely at the same time, sometimes sharing such information in our real lives, which may or may not be good uses of our time even though surely there can be times in which we may well need to spend time to help others to learn about bitcoin and/or to get introduced to bitcoin in terms of potentially helping them to understand some of the asymmetric information that we have come to realize. We also surely have to be careful not to put ourselves too much at physical risk in terms of our security and the security of the coins that we hold, so we may well need to make sure that we are engaging in practices to meaningfully balance our security... so sometimes with strangers (or maybe they are not completely strangers since they are members of our community), we might interact with them, even in a financial transaction, and we might ask them if they accept bitcoin for their goods and/or services, and they may or may not act like they know what is bitcoin, and we might suggest that bitcoin can be a good way of directly transacting in terms of goods and services, and we might not even proclaim to know much about bitcoin beyond having had heard about it as a good way to transact. .and so even though we are talking about bitcoin, we are not necessarily proclaiming to be bitcoin rich.. which could be problematic for our own security and privacy.