Topic: How to know a good bitcoin investors! - page 3. (Read 1321 times)

That's true, because someone who has good planning and a very wise way of managing finances and is also able to have good risk management is someone who can be a good investor for anything (including for Bitcoin). Because someone who has all the elements mentioned by the OP is a very extraordinary person so he is not only suitable to be a Bitcoin investor, but also very suitable to be an investor in assets other than Bitcoin as long as these assets are the best for him.

Because sometimes it is very difficult to have all of these things consistently in someone, especially if an investor must be able to maintain it in the long term. Of course it's not very easy to do because even though it's not an impossible thing to do for everyone who wants to make himself a good investor for several assets (including Bitcoin).

And also sincerity and setting up trust to your team are some of the things one must do to be a good investor. To be a good investor is not for mere verbal speaking but your actions and activities and dealings towards your clients and you cannot be a good investor when there is nobody recommend you as one. Because you cannot praise yourself the matter what you are good in it. It is others who sees you doing well will praise you. Your good character of doing things with calm mind is okay to be a good investor.

Indeed, this notion holds true. A savvy Bitcoin investor always exercises prudence when making decisions. Calculations and strategies in the realm of investments bear paramount importance, for in the domain of Bitcoin, one must not solely rely on the capricious whims of fortune.

Here are other facets that may serve as fundamental knowledge to steer your Bitcoin investments in a more purposeful and well-orchestrated direction:

-Conduct thorough research and seek education
-Implement risk management techniques
-Choose a reputable exchange platform
-Opt for a trustworthy wallet provider
-Stay continuously updated on the latest news
-Embrace a long-term perspective
-Comprehend the nuances of legal regulations

Adapt these principles to your preferred investment style, so as not to disrupt your efficacy.

To become a good investor first:

1. Patience

2.  Ability to understand risk

3.  Adopting techniques with careful planning and vetting before taking any action.

4.  Always keep portfolio in mind otherwise it is natural to face danger.  And don't put all your eggs in one basket.

5. And a skilled investor must know the latest updates about the market.

A prudent investor must adopt these approaches.  Because all qualities must be present in an investor otherwise one may face losses.

Patience is the tool use to determine a good BTC investors, because many BTC investors has failed in so many ways not to earn well from their investment, just because they didn't exercise patience to hold for the right time to come. Any BTC investors that Carry patience along in his or her investment, it is very difficult for such investors to miss it in future, you know why? he or she will be counting some months or years he or she has been holding that particular coin which he or she believe that the price will definitely come through for he or she to smile at the end, that is what make someone a good investor. Over a month now, the price of BTC is still around $30k and many investors who don't endure any longer will sell , but those potential investors that Carry patience will not sell until the price hit $80k or $100k before they can sell to make a good result.

Of course, you have to decide these kinds of balances for yourself to the extent that you believe that you are going to be able to build your bitcoin investment (and the size of your overall investment portfolio) by engaging in selling rather than ongoing, consistent and persistent buying of BTC behaviors... especially presumptively as a newbie who is in the earlier stages of building his/her wealth/investment portfolio.

For sure, there could be strategies that end up working out well to sell some BTC (or even all of your BTC) on the way up, but there are a lot of prior BTC holders who became completely bitter because they sold their BTC at profits, but the BTC price continued to go up and either did not correct back below the previous sell price or it took a year or two before the BTC price corrected back below the prior BTC sell price which caused for a lot of frustration in terms of lost opportunities in terms of the higher BTC prices... including that sometimes if the BTC price is high for so long, the frustrated person ends up buying back in at higher prices, which is not necessarily a good strategy, even though it might seem like the more obvious strategy when a person ends up contributing to himself being a low coiner or a no coiner.

No one can tell you where to strike such balances, and my own personal philosophy is to really error on the side of buying and ongoingly buying, and maybe coming up with some kind of measure that you will not play around with selling until after your portfolio has reached 1 or 2x the size of your annual income.. yet of course, there might be other kinds of criteria or even some kinds of ways to approach selling in such a way that you are not really selling very many BTC, so that even if you sell some BTC on the way up, you are not selling high portions of your BTC holdings... and if you have not looked at Rpietila's (Risto's) 2013 thread, maybe you should?  (SSS) - A Sane and Simple bitcoin Savings plan

Any newbie investor had a lot of task to do and a long way to go when they are set for bitcoin investment, this is not what to just determined overnight and invested because you've got some financial opportunities to invest and hold, have we also consider that bitcoin is a digital currency which means that we are not expected to buy money, we rather exchange for it or earn it by different means, this could be one of the best ways we can be a good investor, how do we now invest also matters alot, but the road to this here now begins with learning, knowing the different investment plans and strategies, how we could reduce the cost of loss and maximize profits, how we can sell and be on the good advantage of such decision and many more ways we could adopt while trying to be a good bitcoin investor.

I like that framing idea.. active versus passive, and even though we know that there are gradients within the categories, we can also attempt to recognize where we might be in terms of how active we are or how passive we might be.

I would argue that even within the category of passive, there are some folks who are completely passive in the sense that they may have lump sum bought into bitcoin, and they just sit on their investment (maybe look at it once a quarter-ish).. and then there are those who might make multiple lump sum investments.. and maybe they do a bit of DCA and a bit of attempting to buy on dips.  They are more active than the one who ONLY made one lump sum investment, but they are no way even close to as active as someone who engages in trading or who includes selling in their BTC portfolio management strategies.

So then we can see on the other side of the more active traders, there are traders who will try to catch every swing in BTC price and who might even dabble in shitcoins as a means to try to build their BTC portfolio, and then there would be traders who are less active because they might either ONLY set sell orders for "very BIG" BTC price moves that might take years to play out or they might have a somewhat passive approach in the way that they set their BTC sales that is not attempting to figure out BTC price moves, but instead just having a system set up in which they sell small amounts of BTC at various price increments of the BTC price going up, and so the spreads of the increments may or may not be large, and also the spread between selling and buying back may or may not be large, as well.. the larger these kinds of increment spreads and spreads between sells and buys, then the less active those kinds of traders would be too. 

By the way, I tend to fit in this latter group, even though for sure I suggest that newbies do not even attempt to do what I am doing and that they first build up their BTC portfolio by ONLY focusing on ways to buy BTC (and if they sell any BTC, they replace it within a reasonable short period of time), so they are focusing on accumulation based on various ways of buying BTC until they might reach a decently large BTC stack size, then they might consider (if they want) to include some selling techniques within their BTC portfolio management strategies.

So yes, you could still be an investor employing any of these kinds of tactics, and surely I would agree that the more active that a person is in terms of trading and fucking around with a variety of strategies to try to time markets, they may well not fit as much of a strict investor - especially when they might be emphasizing their own abilities to stack dollars rather than seeing value in making sure that their BTC stash is ongoingly maintained and growing (which would be emphasizing the stacking of sats). 

Of course, since we live in a world that includes a lot of fiat systems and fiat emphasis, bitcoiners likely are going to have some kinds of dilemmas regarding how much to emphasize how much they are investing time, money and energies into building their fiat values versus building their BTC values.. and all of us are not going to come to the same conclusions regarding how and where to strike those kinds of balances.. and Jeff Booth talks quite a bit about the transition over to the bitcoin system being difficult for those people who are failing/refusing to recognize and appreciate bitcoin for the new system that it is and the new system that is going  to continue to suck (and gravitate) value into it... and many of the longer term bitcoiners realize/appreciate that it remains a good idea to continue to have ourselves invested in bitcoin in a variety of ways financially, psychologically and how we spend our time, even if we might not completely detach ourselves from fiat systems that continue to be all around us - depending on how active we are in the world in terms of consuming goods and services and needing to transact in fiat to the extent to which the bitcoin circular economy is still in its very infancy stages in terms of how much any of us might be able to consume goods and services through bitcoin.

For me the concept is way simpler than what you're saying, mainly because there are two types of investors: active and passive, meaning that an active investor makes a lot of trades and is supposed to know a lot of news and rumors because timing is everything; then we have the passive investors, those who simply buy, accumulate, and patiently wait. I would say that very few people fall in the first category mainly because those who try to do trading oftentimes end up losing money, I prefer the second category, you just need to be patient (which is not easy) but you'll get your return.

Ok... now I am caught up.  I got through the whole thread... a lot of shitcoiners in this thread... and members who don't seem to know the difference between bitcoin and shitcoins nor the difference between investing and trading...

Surely you can employ some trading and gambling tactics in your investing, but the vast majority of investing is not going to fuck around with trading, gambling techniques, pump and dump theories that are involved with shitcoins.. and the technical analysis that goes along with those kinds of short-term ins and outs.

Of course, you can invest with some broader concerns about buying on the way down and selling on the way up, but if you have figured out that the asset that you are investing in (in this case bitcoin) has decently high fundamental value, then you should not be fucking around with trading but instead figuring out techniques to buy it, accumulate it and to hold it for the long term.. which surely there can be challenges in themselves to figure out some reasonable portfolio management that might allow you to offset some of the volatility by selling on the way up and buying on the way down, but if you want to stay invested in the asset (bitcoin in this case) those sells on the way up, should not be largely depleting the overall value of your BTC holdings.. so maybe something like 10% (at most) for every 100% that the BTC price goes up, but you should also figure out the point in which your raking of profits begins to come.. and you might wait until your overall BTC are 3-5x or even more in profits before you even start your raking of profits schemes..

I am getting a lot of these ideas about limiting your BTC sales from the 2013 Thread entitled: (SSS) - A Sane and Simple bitcoin Savings plan of the late and great Rpietila's (Risto), even though in real life he turned out to be a bit of a unstable drama queen scammer and even shitcoiner. (RIP Risto).  

And, so my point is the emphasis of investment rather than trading and screwing around, but instead having some kind of a plan that deals with mostly accumulation, but then when you reach certain high levels of accumulation, you can start to both shave off profits while at the same time. not selling too much of your BTC stash and not making the sales of BTC in order to buy back cheaper but instead to take value off the table.. even if maybe you might still end up using some of the sales proceeds to buy back later or even to provide a kind of downside insurance towards your BTC holdings.


I mostly agree with you - except the bitcoin investor may well have recognized bitcoin as an investment that is quite distinct from other investments that are currently available to them, and bitcoin is distinct from other investments in terms of its paradigm-shifting aspects and in terms of its bringing the unique abilities to transfer/communicate and store value to the world that has never previously been possible.. so there is a lot of interesting aspects and mysteries in how the bitcoin investment is going to play out as bitcoin matures - and truly bitcoin is still in its very earliest years of adoption..  with less than 1% of the world's population invested into it, and even a large number of those invested into bitcoin are likely under-invested - in terms of how much of their networth is in bitcoin..  

How many folks have 1-25% of their networth in bitcoin?  And where are they on that spectrum?  Surely bitcoin is quite private so it is not easy to compile this kind of data regarding how much bitcoin people hold, even though there are a variety of incomplete mechanisms in which we have to theorize regarding the extent to which the information is accurate.

Of course, there are some bitcoin investors who do not really recognize and/or appreciate that bitcoin is something greatly different in terms of its paradigm-shifting dynamics, and they might even falsely categorize bitcoin as if it were a mature asset or somehow significantly and meaningfully comparable to other assets, and surely you, Die_empty, might well be one of those folks who don't really know what the fuck is bitcoin.. even though you act like you do.    

...and the mere fact that you are proclaiming that bitcoin is not any different than any other kind of investment likely reveals your lack of understanding and/or appreciation of the power of king daddy.


Hopefully, you still have enough of dee cornz, even if you may well not understand, recognize and/or appreciate what the fuck it is.  

 

Patience is the one true characteristic a good investor must posses, sometimes they are a lot of people with good plan on how to go about their investment but they easily get affected by stories or should I say theories of people who always talk about wild fantasy of them accumulating much from short time trading with their investment which if you are a good investor that fully knows what his doing will understand that holding is the key and all theories of people are sometimes self made and might not work out well if you decide to try it.

And moreover as a good investor you will made research about the product you are investing in (BTC) and would have known by now that  it always has its time to yield from past records, its just a matter of patient are you to wait till the market favours you and not fall in to the short success stories of other people. @a patient holder always laughs last.

I am just starting to read through this thread, and I cannot resist to make some comments before i get through the whole thing.

I agree with the main sentiments of what you are saying Hatchy; however, I think that you are NOT correct in suggesting that there is a need to diversify in order to have a good investing strategy.

I also disagree that you need to figure out all of the details prior to investing, since starting to put into practice some kind of an investment practice, is likely to help inspire greater learning and also greater incentives to pay attention and to figure out the details.

Accordingly, if someone is a brand new investor, such person may well focus ONLY on investing into bitcoin with a somewhat modest amount of value, such as $10 per week, and then continue to study themselves and bitcoin in order to figure out the extent to which they might need to tweak their initial plan to be more in accordance to what they are learning about themselves and about bitcoin as an investment. 

They can also figure out if they want to deploy larger amounts of value to attempt to buy on dips and/or to lump sum invest - including that they can try to figure out what their target BTC accumulation amount is going to be in various timeframes that might be realistic to their projecting out their anticipated cashflow in the coming 6 months, 2 years, 5 years and/or 10 years, and they likely will not even need to be correct in terms of their various projections, except of course, the shorter the timeline the more correct that they have to be in terms of having enough money to pay for things in the next 1-3 months is more urgent than trying to figure out 2-5 years down the road, even though things that any of us might do now, may well likely have impacts upon what kinds of options that we might have 4-10 years or longer into the future... yet our plan about what to do 4-10 years or more into the future will be more well informed once we know where we are at at that time, rather than trying to guess where we will be at at that time, even though we can still have projections.. including more likely and less likely scenarios.. and the more unknowns that we have within the factors that we are considering, then the more difficult it is going to be to have very precise projections into further out timelines.. but should not stop us from projecting out such timelines and even having various ranges, tweak along the way and to keep our earlier version of events to try to improve upon our own planning and/or our attempts to deploy reasonable plans that fit our own personality and circumstances.


You are not really talking about (or thinking about) risk properly.  One of the ways to think about risk is to figure out your projection of upside and downside scenarios, and to adjust your position size in terms of your expectations of upside/downside scenarios..  Perhaps you might place various timelines to reassess your investment or to consider whether to make additional changes to the way that you invest (or not) into the asset.

Another related approach is to figure out a  dollar cost averaging approach, and I am talking about bitcoin, and not talking about shitcoins.  Fuck shitcoins. 

Anyhow a dollar cost averaging approach can be assessed as $10 per week, $100 per week, $1,000 per week or some other amount that works for your budget, and if you are more skeptical about the investment you might take a lower amount including having a lower target percentage for your accumulation level, so for example a whimpy/skeptical approach may well gravitate towards ONLY reaching around a 1% allocation into bitcoin, and a more aggressive or bullish person might target a 25% allocation into bitcoin, and any of those target allocation/accumulation levels are within a range of reason and could be ways to consider dealing with volatility and/or risk.


The basic ideas of investing are the same whether you are an individual, institution or a government, of course, individuals have more abilities to move faster, but sometimes they do not have access to the same kinds of resources that institutions and/or governments have, and one of the great things about bitcoin has been that individuals are able to front-run institutions and governments because they are both slower in their abilities to implement but they are also slower in terms of their abilities to decide (or determine) that bitcoin is a good investment (including that bitcoin may well be in the process of facilitating the greatest peaceful wealth transfer in the history of man)... and if individuals are able to recognize bitcoin as a good investment and to figure out how to get in early (and perhaps even somewhat aggressively), they are likely going to fair quite well as compared with institutions and/or governments so long as the individuals do not reck themselves in the process by either being too greedy or maybe being sloppy in terms of the ways that they store/secure their coins.


I have my doubts regarding the extent to which anyone needs to know about the tech of bitcoin in order to understand various aspects of the strength of bitcoin's investment thesis. 

Sure, try to understand as much as you are able to understand, but don't let the perfect be the enemy of the good and don't kill yourself over those kinds of details since understanding the tech is not a prerequisite towards being able to recognize bitcoin as a good investment in terms of its sound money properties and in terms of the various ways that it has allowed for the widespread storage and communication of value in ways that previously had not been possible.


It is also not bad if you do not take profits. or if the amount of profits that you take is ONLY a very small percentage of your overall BTC holdings, such as if your plan might be to hold bitcoin for 10 years or more or even 20-50 years or to be able to create various kinds of generational wealth with your bitcoin.

If the various possibilities of bitcoin are even close to as great as they are reasonably projected out to be, there can be ways to shave off various profits at various points, and still be rich as fuck into the future, and you have mostly errored on the side of holding your bitcoin rather than selling it for some crap such as fiat.. but surely if there are other ways to diversify your investment, there is nothing wrong with that - but there may well be no need to hold largely inferior assets merely because the value of your bitcoin has become way greater than any other assets that you might hold.

Let's say that you start out with a target investment portfolio that is around 10% to 15% bitcoin, however, over the next 5-8 years (your timeline), you notice that your bitcoin have become 60-90% of the value of your total investment portfolio, and the reason for the lopsidedness has to do with the appreciation of the price of bitcoin, since your other holdings have largely increased at a regular pace of 5% to 10% per year on average, but bitcoin has out performed those other investments, so then in that kind of a case, what is the need to diversify out of bitcoin into "inferior" investments?  I doubt that there is a need to do such a thing, even though each person is free to figure out the extent to which s/he might feel that s/he needs to be invested into assets (such as property, stocks, bonds, cash and/or commodities) other than bitcoin.

That sounds more like the ones trying to sell themselves. Most successful bitcoin investors dont show themselves but keep investing and leading a quiet life amidst the hustle and bustle of the community. The ones who might come out to boast will have some motive for doing so, be careful of that - either they have a product to sell or some book their wrote recently.

Its a general idea. Most users here know this but dont know the implication of it. Keeping a wallet secure is the first thing a bitcoin user must do before buying any coins. Knowing how the speculative market works and how to cope with the cycles in the next.

Yes exactly those individuals who did these things always considered as a successful bitcoin investor because in short term people will often makes mistakes as there is little time to take decision but if an investor keep his bitcoin for longer term then he will not be in trouble due to lower market rates as there will be hope that one day it will again rise to the previous worth.

Successful bitcoin trader will not spend his money in useless activities but actually he will save the amount for investments which help him in making a prosperous future. Also a successful bitcoin investor never depends totally on others but make their own thoughts by keeping in mind the conclusions of other successful investor.

These are very important characteristics of a good bitcoin investor. Having such attributes probably helps any investor, not only the ones in crypto currencies. Without an affinity for numbers and interest in financial knowledge it might be hard for an individual to succeed in investing over a longer period of time. Being lucky a few times and making highly profitable trades is not guaranteeing success longterm. Luck only plays a big role at the start of a career, eventually it will be overtaken by skill. That is also one more point I would add to your list, they're successful. The best way to show skill is by showing the track record for an investor. Being successful over a long period is going to be one of the best selling point and should attract a lot of interest in the investor.

Well, arent we armchair financiers here! Sure, a savvy investor can gain regardless of their financial status, but doesnt life play a trickier game? Indeed, substantial capital lends a safety net. With a thick wallet, a few wrong trades wont usher in financial ruin. But for the paycheck-to-paycheck folks, is betting big on crypto's wild ride viable? Sure, vision, goals, and mindset matter. But dont they all sway with our financial standing? Isnt it simpler to maintain a sharp vision and upbeat spirit without the worry of next meal? Lets not simplify things here

If you have acquired this knowledge, don't feels relax and relent on what you know, always keep to learning more beca because bitcoin learning is a continuous process in cryptocurrency, we cannot know everything at once and for all, but we gradually keep on improving each day over what we already knew.


There are many ways we can always stays updated about the bitcoin network using many market indications to study the flow and have better understanding of our holding or trading with bitcoin

There are a few things to look for in identifying good Bitcoin investor. Bitcoin investors need to know how much knowledge and skills they have about Bitcoin and trading. An investor in Bitcoin should have a long term perspective as Bitcoin is fluctuating significantly now if he has invested above the peak then if the market goes down then the long term investment may be stuck where risk management has to be kept in mind.
Moreover, the investor must secure his own assets by using a good wallet and an investor must always keep in mind that there is no guarantee of profit in Bitcoin investment and should be invested with utmost caution.

I partially agree with you. If you have a lot of money to invest, you can do whatever you want with it. However, if you are a competent investor, you can be successful regardless of your financial situation. If you can make money with a small amount of capital, you can make money with a large amount of capital. Your success will also be determined by your vision and goals, as these two factors are the source of your motivation and inspiration. And I believe psychology is one of the keys to success since we all know that our emotions may have a significant impact on our market execution.

I don't agree with some of your points here mate. Bitcoin investors are not risk managers, they are more like strategic investors who have a pretty good knowledge of the market and know when to buy and sell, but risk managers or risk takers are investors who put their money on shitty projects and meme coins with no real use-cases. I don't know what point you're trying to drive home but I wish you had taken time to shade more light on the highlighted points maybe you would have won me over. I also understand your inability to flow very well in English but I do appreciate the effort anyways.