My family members have assured me that I am planning my future where other children take money from their parents and buy drugs and other bad things with that money. They were happy with my plan and said that they would help me financially or otherwise in terms of investment.
It turns out that you have been investing in your bitcoins for months and suddenly the price of bitcoins has dropped, will your family help you continue your bitcoin investment or do you have enough opportunities to invest without their help. Prepare yourself to invest in Bitcoin in such a way that you can continue your investment properly even if there are hundreds of hurdles. Investing in bitcoin requires a lot of patience and long time which will take you to your destination.
But basically the risks that exist in every investment field can be minimized by developing our knowledge in the field we are going to enter.
Trust me if we invest in property that is said to have low risk. But for us it can be very high risk if we don't understand and study it first before entering it.
For example, if we buy property in a disaster-prone area. Then it's the same as us throwing away our money. Because the price will continue to fall. especially if it is land prone to landslides and so on. Which even the previous owner would have left behind.
But when we understand it properly and study it carefully first. Then we can minimize the risk as small as possible. Because we already know which ones have potential and which ones don't. Which ones are worth entering and which ones are not. Because basically investment is about seeing potential in the future.
So now we apply it in Bitcoin. Indeed, Bitcoin is also an asset that has a high level of volatility because its price fluctuates. And yes, this makes many people say that Bitcoin has a fairly high level of risk. But actually, some things are true and some are not.
Because it depends on how deep one's insight into bitcoin itself. If someone can enter Bitcoin investment at the right time after going through a lot of analysis and he has seen the potential in the future. So he can minimize the risk of loss because he entered at the right time. that is, when there is a decline. And then he plans to get out when the bull market comes.
But for beginners who don't study it in more depth. So they tend to enter without taking into account or without careful investment planning due to limited knowledge. This can make the beginner considered investing with high risk. Because he has entered in a field that he is not good at. So the conclusion is high risk is for those who enter in fields that they do not study. And the risk is low for those who enter a field they have mastered.
There is no best time to buy for a new beginner in his long term bitcoin accumulation goal because he just started and needs to keep on accumulating bitcoin to his portfolio regularly using DCA method so that he can reach his bitcoin target overtime. This is why the DCA method is best recommended for beginners because it gives them the opportunity to buy bitcoin always irrespective of bitcoin price. What a new beginner needs to figure out is how much of his discretionary income that he can use to buy bitcoin that he can be consistent with, so that he can continue buying with such amount regularly without stopping, and at the same time build his emergency funds from the other part of his discretionary income because it is very necessary, to become a successful long-term bitcoin hodler. A new beginner can start investing into bitcoin and learn about bitcoin at the same time, because in bitcoin accumulation experience is the best teacher than mere theory. Also the time that he will delay in learning cannot be recovered, that is why those that are just starting should not waste any time but start right away as long as they have the money.
It is impossible to learn everything about bitcoin in just one year so learn is a gradual process, and there is no need to have majority of the knowledge, because as time passes by the price of bitcoin will not remain the same.
Without knowledge buying Bitcoin is a waste because it will look so complicated to the person when their is fall in the market. Knowledge about bitcoin is not just about investing but how to use the right wallet and also helps to give good Understanding in securing the seed phrase. No matter the amount used in buying Bitcoin, no bitcoin if their is no knowledge on how to invest because their can't be magic to end up with a positive result by the end of the investment.
Frankolala is right.... Any new beginner to bitcoin only need to know the basic knowledge of bitcoin which is how to buy bitcoin from exchange and the best wallet to use and how to transfer bitcoin to his wallet. It is good to start investing and don't need anyone to advice him on his bitcoin journey before he buys. This is because he is investing and hodli for 4-10 years and above. During that period, those years are big enough for the new bitcoin investor to learn whatever he needs and that is why you are at advantage to invest as you learn because practical and theory goes hand in hand.
Theory will not teach you how to save money in the bank, you practice it. Theory will not teach you how to use the exact discretionary income to buy bitcoin regularly using DCA and how to control your emotions on bitcoin price fluctuations. It is traders or short-term hodlers that will run at loss if they enter the market with the basic knowledge of bitcoin. Buying and storing in cold storage wallet only overtime will not make you run at loss because as time passes on, bitcoin price increases in value and it is likely to continue like that.
So if you are waiting to get all the knowledge of bitcoin before you want to start investing, you will end up buying bitcoin expensive than this price and also accumulating little quantity of bitcoin compare to if you were investing and learning. Time waste for no man, and we keep in getting older everyday. About the seed phrase the moment you create your wallet, you would be advised to keep it safe from third party which is still practical.
I don't think that I have seen any investor who understands what investment is, and he wakes up one morning and decided he wants to invest in bitcoin without him asking someone or go to the internet to see how he learn about bitcoin and he will only focus on how to buy and store because that it his plan to invest, and after buying he can now have full interest to learn more about bitcoin because he has already invested and needs to keep his investment safe.