It can take a real long time to make up for some of the losses that happen, so when any of us is looking at our investment portfolio, we have to be careful about not losing our principle. So we should be figuring out ways to establish our various position sizes in such ways that we are not putting our principle at risk.
Yes, I know easier said than done.. but first of all figuring out how much we are going to invest into BTC or other investments, such as 10% of our salary (or some other reasonable amount that allows us to continue to live a reasonable lifestyle). .and then once we have figured out our budget then we have to figure out what to invest into.. If you are a brand new investor, then there does not seem to be anything wrong with putting all or most of your 10% amount into bitcoin until you reach a certain level of 20% to 50% of your annual salary or some other number that you believe to be reasonable and then at some later point, then figure out how to diversify.. and most likely not shitcoins but instead property, equities, commodities, bonds, and cash/cash equivalents... and sure if you cannot resist getting involved in various shitcoins, then restrict your investment into them to no more than 10% of the size of your bitcoin investment.. unless you figure out some angle that is actually good information about some project that you are going to invest into and to go beyond 10% of ther size of your bitcoin investment.
Anyhow, the point is that many times, it does take a long time to build back principle when you end up losing a lot of it (or even all of it) because you got to greedy and/or you failed to limit your position size based on how much risk you were entering into.
Diversification is the next big step that I will need to figure out. Once a certain level of capital is reached, its preservation will be an important issue, and in this case, diversification into less risky investments will be a logical solution.Yes, I know easier said than done.. but first of all figuring out how much we are going to invest into BTC or other investments, such as 10% of our salary (or some other reasonable amount that allows us to continue to live a reasonable lifestyle). .and then once we have figured out our budget then we have to figure out what to invest into.. If you are a brand new investor, then there does not seem to be anything wrong with putting all or most of your 10% amount into bitcoin until you reach a certain level of 20% to 50% of your annual salary or some other number that you believe to be reasonable and then at some later point, then figure out how to diversify.. and most likely not shitcoins but instead property, equities, commodities, bonds, and cash/cash equivalents... and sure if you cannot resist getting involved in various shitcoins, then restrict your investment into them to no more than 10% of the size of your bitcoin investment.. unless you figure out some angle that is actually good information about some project that you are going to invest into and to go beyond 10% of ther size of your bitcoin investment.
Anyhow, the point is that many times, it does take a long time to build back principle when you end up losing a lot of it (or even all of it) because you got to greedy and/or you failed to limit your position size based on how much risk you were entering into.
It seems simple until you actually experience it personally, then you begin to understand that there are many options, and with little capital you want to choose the best one possible, but this is not so simple. I've never dealt with stocks or bonds, I've only had a little experience with real estate, but I'm not sure that's what I'd like to invest in. If we talk about goods, this will most likely imply that I will be doing business, but this is not very interesting to me either. At the moment I have achieved a good standard of living and have begun to value my time, so I would like to spend more time with my family. And Bitcoin looks like a very good investment in this case, I buy Bitcoin and wait for my goals, it doesn’t require much of my time.
Maybe when you get to a stage in which you are starting to get ready to diversify, it will start to make more sense which place to either start to put value or to lump sum into it. Surely one of the advantages about bitcoin and dollars (or whatever is your fiat), you can fairly easily get in and out of them, including that you are able to put small amounts at a time.
Sometimes it can be more complicated with something like investing into property or like a business, but sometimes the property could become logical since you might be living in it as well.. but at the same time, it is not very liquid or moveable.
Sometimes with something like stocks you have to figure out how to open up an account, and you might even have to have a certain amount of value that you have to be able to put into it.. and perhaps that's part of the appeal that a lot of normies have when it comes to getting into shitcoins instead of some more traditional investments, and perhaps some of the shitcoin and bitcoin space might contribute towards making some of the traditional investments more available and easier to get into.. one of the things that people like about something like Robinhood.... but there are becoming more of those kinds of services.. but still 3rd party risk with those kinds of accounts.. and for sure KYC. .yet in my view, there can be some advantages towards having both KYC and non-KYC.. and of course, there are ways in which bitcoiners are continuously trying to figure out more ways for a circular economy in which there are several non-KYC transactional and interaction options.
