There are many investors who are not motivated to invest despite having money. They definitely need to have a good understanding of Bitcoin at the beginning. But in most cases, the picture that is seen is that they get stuck in the middle due to lack of investment knowledge. There are many people who cannot maintain their investment after investing in Bitcoin. The purpose for which they invested is not successful. An investor should definitely give importance to several things while investing in Bitcoin. At the beginning of the investment, it should be seen whether he has the capacity to invest. If he has discretionary income and if he can invest in Bitcoin regularly for a long time, then he can benefit from Bitcoin investment at some stage.
Knowledge is what makes people invest in Bitcoin. That is why you see someone who thinks Bitcoin is too expensive to invest in, while they can just invest the little they can afford and do so consistently. You will also see people who are earning well but still find it difficult to invest.
Money doesn't really determine Bitcoin investment; though money is important, you can still have money and not invest. Knowledge is the principal thing in Bitcoin investment. That is why you can see a student who depends on their parents for upkeep money, but the person is consistently investing in Bitcoin. This is not because the money is too available, but this investment is possible because of the understanding one has about Bitcoin investment.
Knowledge is not an all or nothing thing, so not very much knowledge is needed in order to get started in your bitcoin journey, yet it would be needed to either be more aggressive or to continue to invest through ongoing persistence consistent and regular buying. The behaviors reinforce the knowledge and conviction and the knowledge and conviction reinforces the behaviors of buying, and if you don’t screw up then you will likely continue to experience positive reinforcement through your bitcoin buying actions and hopefully through your building and maintaining strong cash flow management systems and practices.
Surely. It's good to be knowledgeable, but you don't have to be too knowledgeable to invest in Bitcoin.
I am surely not against knowledge, yet to get started investing in bitcoin, we start with what we got, we adjust our position size to our level of knowledge (hopefully starting out conservatively as we are getting a grasp) and then increase our knowledge as we go, and while we are increasing our knowledge, we can increase our level of aggressiveness.
No one wants to lose money in any investment, yet merely be looking at the bitcoin charts and having very superficial knowledge of what they mean, any regular level intelligence person should be able to recognize that bitcoin is very volatile and in the short-to-medium term it can go in any direction, and also it could gravitate towards zero rather than going up. So our inability to see what might happen in the short-to-medium term, and even our potential skepticism about bitcoin, might causes us to start out more conservatively and hopefully motivate us to learn about bitcoin while figuring out a position size that is comfortable for our budget.. so the main thing that we need to know, to get started is whether or not we have a discretionary income and perhaps how much of that we want to put into bitcoin perhaps with having an eye for potentially locking up such money for 4-10 years or longer.
Some new investors say they want to invest but they actually have limited knowledge or know very little about Bitcoin.
If we look at the
9 individual factors, only 1 of them deals with our view about bitcoin as compared with other places that we might put our time, energy and/or our value.
The beginner does not need to know all of the specifics of his 9 individual factors to get started, yet likely as he is investing into bitcoin he will get more and more attuned to his 9 individual factors in order to adjust his approach to bitcoin in accordance with his becoming more and more comfortable and perhaps more confident about bitcoin as contrasted with other places that he could put his time, energies and value.
Some investors are hesitant to invest aggressively in Bitcoin despite the fact that the income stream is definitely strong,
There is nothing wrong with starting out fairly conservatively. I personally frequently suggest to invest into bitcoin as aggressively as possible without overdoing it, yet newbies still are responsible for themselves and to figure out the extent to which he is able to be aggressive without overdoing it. If they make mistakes in measuring their level of aggressiveness, that is their own fault, so they have to figure out what is their limit, and they are probably better to start out slow and get used to investing in bitcoin rather than starting out biting off more than they can chew.
Let's say in the beginning a bitcoin newbie does a superficial glance at his budget, and he can clearly see from his discretionary income that he is able to invest $100 per week into bitcoin with no problem, since he has a discretionary income that is regularly more than $150 per week. Yet, instead of investing $100 per week in bitcoin, maybe he starts out investing $30 per week into bitcoin and then planning to study and to reassess the amount every several weeks for the first 6 months and maybe after several months he is able to increase his amounts invested into bitcoin.
These are not easy things to accomplish since a person is investing and paying attention to bitcoin, yet the BTC price is constantly bouncing around, yet one of the most important aspects of what the newbie is doing is both making sure that the amounts being invested are clearly within his discretionary income, yet he may also be making sure that other aspects of his finances are in decent order too, which may well be the building up of an emergency fund simultaneously, if he does not already have that and maybe he might have to consider some other matters that relate to his overall cashflow such as figuring out various kind of debt the he already has (if any), and a lot of folks use debt to support their lifestyle and/or to make investments.
but they should remember that if they are in initial stage about Bitcoin in the beginning they can start right away. It's not important that some poor folk have a strong income stream.They have a flow of discretionary funds that are useful for investing in Bitcoin in the long term.
Of course, the smaller their discretionary income, the fewer options that they have, and some newbies might not realize that they are able to increase their discretionary income, yet they also might have to spend some time going through their various income sources and even how they are spending, and some guys do not really want to cut expenses (and that makes sense), yet they might have to consider what their various options might be to increase their income in the short term or even in the longer term, so even if they are disinclined to cut expenses, they might end up coming up with some possible ways forward that end up ONLY working if they reconsider their various expenses, and they might have had been living in a place by themselves, yet they find out that they would be able to considerably increase their abilities to invest in bitcoin or even to spend on getting training to increase their chances for promotion, if they are able to save on some of their expenses, so they decide to get a roommate.. even though a roommate is a bit of an inconvenience.. but it cuts their rent and their utilities to almost half.
These are not easy choices. I recall so much through my 20s and 30s I had frequently purposefully chose to live in roommate situations so that I was able to invest, and through those years, I really had way lower expenses than a lot of my peers.. and so the difference can really be measured after several years 10-20 years of living like that.
Later I have had situations in which I had completely discontinued any roommate situation, since I no longer need to be bothered about saving money to invest. .and the same is true with cars. I had always purposefully bought cars that were at least 3 years old, and frequently they were like 5 years old or more when I bought them, so many cars that I had would hold their value pretty well, they would not cause me to have to make payments and I could usually buy them with cash. In more recent times, I have been throwing a lot of money away on cars, and I no longer need to be frugal about my cars, even though it could save me a lot of money. I had similar things that I did with food too. There can be a lot of ways to really save a lot of money when we are in our early investing stages and trying to increase our discretionary income. If we engage in such conduct for 10 years or more, then we might well get through some phases of our life that we are able to build our investments and our finances, and we do not necessarily need to continue to be frugal once we get through those earlier phases.. and so we have to be careful to recognize/appreciate the difference in regards to which stage we are in.. and not to try to advance out of an earlier stage too early and to cause ourselves to never to be able to reach the later stages.