Topic: Highest percentage of portfolio that is reasonable to keep in btc? (Read 1600 times)

If you have an investment portfolio, I think 5-10% is a smart initial investment, putting all of it in as soon as possible.  Do not buy any more, or sell any more until it is overvalued - it is extremely undervalued right now so do not delay.  Once it gets overvalued, start selling it off one or two percent at a time as it continues to reach all time highs.  Once you have half of it sold off, this should be at a price point that is way above what most people think the bubble would go, if it ever gets that high.  Keep this in liquid assets until bitcoin gets undervalued again like it is now.

At that point, but more coin, but also spend some of the profits to help with whatever you wish to accomplish with your life.

I got in at a $25 cost basis with 5% of my portfolio, but I really had trouble deciding to buy or sell, so I did both - and lost at least a third of what I should have had I held, through 2 bubbles.  It is very stressful to get rapidly wealthy in unrealized gains.  Keep a cool head. 

If you are in the US as I am, then you should realize your national currency is in very great danger.  I keep hearing 60 trillion of debt now - I fear all our dollar-denominated assets are at risk of seizure by the demonic international bankers who control our politicians.  Soon that 5% initial investment will become 80% and higher of your net worth.   At that point your bitcoin profits should remain at least 50% invested in bitcoin.  The wealthy are buying collectible items like rare art masterpieces.  Maybe that is a good place to diversify.  A little gold might be good to have.  Silver seems really heavy/bulky in larger amounts.

I did not understand how to determine bitcoin is over or under-valued until after the last bubble crashed, unfortunately, so I am waiting for the next bubble to exercise my new-found wisdom.  Not everyone agrees with this model of valuating bitcoin for trading purposes, but it is important to decide your sell and buy strategy in advance before the rapid price increases (and drops) create alot of stress. 

here are some good links I would recommend:
https://bitcointalksearch.org/topic/stephen-reeds-million-dollar-logistic-model-366214
https://bitcointalksearch.org/topic/m.7072418

I currently have 10% of my portfolio in BTC.  I'll be uping it to 20% real soon.  I'm thinking about buying another 5% here and then add 5% more after the auction.

Not if you guard the basket really well.

I have gone 100% in LTC and BTC a few times in the past but this was sub $100/BTC and sub $1/LTC.

I would never go more than 80% in crypto. You need to consider for yourself your own risk appetite. I personally don't want 100% net worth in BTC or LTC etc.

It is always a good idea to take PROFIT off of the table even if you don't make mega profits.

This is not financial advice.

Nah, just keep a close watch on that basket

Putting all eggs in the same basket is always a bad idea.

^^^I think that these are the most reasonable numbers to invest initially.
However, what to do in a hypothetical scenario of BTC appreciating four fold or tenfold(to $2400-6000)?
This is the real question.

Was a family loan. I currently am unable to get a regular loan, but if I could I would get the biggest they would let me get my grubby little hands on.

After you pay off the loan do you plan to take out another loan to buy btc?

Are there people out there cycling through loans, paying them back with profit and then taking out new ones to buy more btc?

It also depends on what size your retirement fund is. If it's $10,000, well, unless you invest most of it in a risky asset with high returns (like Bitcoin), you can be pretty damn sure you'll have to work yourself all the way into the grave. If you do invest in Bitcoin, there is still a good chance there would be no retirement for you, but at least there is some hope.

Currently 113% in. In a week it will be a mere 100% as I pay off the remaining part of my loan. It will go no lower than that as long as the price remains cheap.

For someone approaching retirement I would personally suggest an annuity
Receive a fixed payment for as long as you are alive and there are various products to choose from.

That said if they have spare income from the annuity that they do not need to live on a month to month basis investing some of that in Bitcoin would be a good idea after their expenses.

The annuity interest rate is a bit low still due to the recession still impacting the bond markets but it is a safer system of payment.
http://www.investopedia.com/terms/a/annuity.asp

Do you guys think the same thing applies to someone who is 60 years old and nearing retirement?

I'm not 60, but if I were I would be much more conservative. And it would seem awfully risky to put so much of a retirement fund in to such a volatile instrument.

I would say a conservative approach would be around 5 to 15 percent of ones investment earnings.
The aggressive approach would be 20 to 30 percent

Amounts higher than this would be considered for those who are not risk averse since their is a chance of it burning you by dropping when you need to take it out.

If you have a long duration holding a fair portion of coins is fine though.

With the exception your countries currency is in Jeopardy in which case it might make sense to hedge even more.

99 percent sounds about right 

Imagine you live in Mexico on the border of the US. You will likely keep your money in two currencies. You have pesos for things you spend money on in Mexico and dollars for things you would spend in the US.

Instead of pesos and dollars you now have dollars and bitcoins. You may need some dollars for things you spend money on that you can't use bitcoins for. Everything else you should use bitcoins.

Use gyft as much as you can. You get a 3% discount just for that simple thing. The fact that bitcoin gained an average of 1% per day last year is something else. Even if the value goes up "only" 10% this year you have gained 13% by using bitcoins for your daily spending when you can.

My answer was 100% serious!

Yeah I guess so eh. I cant wait to look back in ten years, sipping the finest whisky aboard my superyacht!

Everyone here is invited btw. Let's get this party going!

Do you really think you will get a serious answer to that question in this forum?  

my advice is to glean as much information as you possibly can on bitcoin and its infrastructure as if you invest in it - and try to determine what % you think it will succeed or fail - and then use this to decide your level of investment.

but if you ask me, then i think the train will be leaving platform number 1 soon - so do not get left behind.

Just goes to show what stupid bulls we are.