Topic: People makes a financial mistakes in cryptocurrency mostly in Bitcoin investment - page 3. (Read 553 times)

Although this topic has been discussed many times, it never gets old because many people still make this mistake. Many people give reasons like inflation, currency devaluation...and they think that depositing money in the bank is wasteful and stupid, even if it is money for daily expenses or for emergencies. They invest all their money in bitcoin and think it is a wise decision but they don't know that bitcoin is a volatile investment in the short term and it can work against them.

In general, many investors are still confused and cannot distinguish between investment and money for daily needs or savings for emergencies. That is really alarming.

If I have a five thousand dollar I would invest 500 dollars since I dont really know cryptocurrency or Bitcoin is I would probably invest one thousand dollars if I have a little bit of knowledge on it, and its always recommended to only invest a small percentage of your money something that you are willing to lose, So putting around one thousand will be the ideal amount, if your going to put more than half of your money into a investment that you dont really know or your not sure than would probably be a gamble on her side because she put everything on one basket would be a mistake for sure.

In my country five thousand is a good amount of money for sure it might not be a huge amount but in my opinion, its enough to start some kind of business to generate income, but if your not that kind to start a business yet it would be great to invest on yourself instead, try to learn a skill that could generate you income, enroll into courses etc. that could land you into a high paying job, if you already have a job try to do side hustles, to have extra income, invest only a small percentage, just try to have a solid financial foundation first.

I agree with you on this one. And this was what I did. The advice I got from the person who introduced me to Bitcoin was the same and it is the same advice that I pass on to others who are I see are new and they want to go full body in without testing its depth.

Well I share in this too. But I know that if you don't learn from our collective experience, you as a beginner will learn from your own experience and your experience will cost you so much money, and other psychological things as well. And in my estimation there are people who prefer to learn from their own experience regardless of how bitter it is.

This topic has been talked about a lot in this forum, it no longer seems like a topic for discuss!
A person who has vast knowledge of investments and investing should know that when investing one doesn't liquidate all the have all in the name of I am investing, any investment you feel you can do such is for short term and some of these investments are not genuine.
Bitcoin is a long term project, so it would be stupid of anyone to put all the have in Bitcoin all in other o make profits.

You can only be wrong in your investment if you don't have sufficient knowledge and skills to grow your investment, and second, you don't have sufficient funds to finance your investment. Either way, it's a financial mistake if you still try to insist investing in crypto knowing what you have may not good enough.

Know when or how to enter crypto or bitcoin investment. The opportunity will always be there, but prepare yourself first even for the worst part as there's always risks that go along with any investment.

I don't think there's an issue here. If that $5k was already set aside for investment, then there's no problem using all of it. No one who buys Bitcoin with $5k ends up at a loss because Bitcoin constantly reaches new ATH's. What people need to learn is not to panic and sell their coins when they are at a loss. Bitcoin will eventually hit a new ATH anyway. Those who know how to wait will never lose in this market.

Another issue is that people lose money by buying mostly shitcoins instead of Bitcoin. Altcoins don't move like Bitcoin. They are more volatile, have no guarantees, and don't necessarily hit new ATH's. People usually lose money by investing in altcoins, but blaming Bitcoin for that doesn't make sense because they are two different things. Their only common trait is being "coins".

Beginners should concentrate on the getting knowledge on bitcoin investment before they invest, knowledge should be the first priority for Beginners, because if they don't get the knowledge I believe that some of them who fails to make research first will end up acting like the lady that I analysis her wrong bitcoin investment, secondly, we need to invest what we can afford to lose as you said and also as everyone who has the experience of bitcoin might have said concerning bitcoin.

Newbies should face reality that the newbies would always made a mistake in bitcoin investment but in my opinion, the mistake that the newbies will make is what will make them learn something about bitcoin investment like what you shouldn't do and should do in order to gain profit from the investment that the newbies made. For people who know about bitcoin for quite some time would always say to other especially to newbies that "you should always invest what you can afford to lose".

Let’s always make it a point to invest only what we can afford to lose. If I have $5k on my savings account, probably I would only invest $1k-$2k of it, so that if volatility happens, I won’t end up highly affected on it. There’s always high risk in any investment most particularly for volatile ones like bitcoin, that’s why once we decide to invest, we should not anticipate instant profits only but definitely even losses because that is highly possible in all investments. The key here is always invest when the right timing comes, or invest through DCA using your spare money that is not intended to pay your monthly bills.

You spoke well, it is important that we know that not all eggs are expected to be on the same basket, same as we cant put all our investment on bitcoin at the same time, not that we don't have trust in it, but we are being mindful of in case of any uncertainties that may cause loses on our investment either as at when we invest or the pattern of investment we took, so its better for us to device a means of using a specific strategy towards our bitcoin investment or accumulation, that being said, we can as well develop a culture of investment diversification by including other assets on our investments.

Investing in Bitcoin is best done for the long term. Only this way can you guarantee a profit. Of course, when we talk about investing in Bitcoin, it’s better to keep your investments for at least two years. It was a mistake for a person to invest all their finances and end up without money for living expenses, and it doesn’t matter what amount we are talking about. Naturally, you should only invest a portion of your capital; this is a sensible approach to your finances for many reasons. It’s important to remember that you are solely responsible for your finances, and you should carefully calculate all the risks in advance. Wishing everyone good exchanges and investments!

If I invest all my savings, let's take the number you use as an example ($5k), and it happens that the bitcoin price moved from the time I made the investment upwards to the time I want to make a little cash out that won't be considered a financial mistake but a good move, it will only be considered a financial mistake if I invest all that money in something I don't know much about and it turns out to be a pump and dump token, which will result in me losing all that $5k.

$5k might be my savings just lying down in a regular bank account investing all that in bitcoin or any form of investment, and I have where I get daily, weekly, or monthly income from that investment. It can't be considered a financial mistake if you ask me; I will only have to save up again from my salary to keep emergency funds ready so as not to sell my bitcoin off when there is not much profit due to unplanned expenses.

The more seasoned people around here know that one of the rules for (any kind of) investment is to only invest what you afford to lose.
It may sound stupid, since bitcoin price goes higher and higher, but in (bitcoin) history the price always had ups and downs. And when a significant price drop happens, the newbie investor is more likely to panic sell if he/she is "all in" than in the cases it's only some money that can stay blocked in bitcoin for years (until the price goes up again).

Plus, as your example also wants to express, (bad) surprises do happen in life and a bit of backup never hurts.


Sadly, in most cases, having money one affords to lose is just a dream. And in such cases it's difficult to impossible to invest.
Sadly, in many cases, the lack of experience and the promise of easy money makes people make mistakes and lose money.
And sadly, most of those susceptible to make this kind of mistakes will not see this, because they start reading after they get burned.

at first i thought when you said savings it meant that she saved this money but in fact this is all her money? well no wonder why she ended up just withdrawing this is very risky and quite frankly pretty useless she is not trading i would assume she doesn’t know how it is so when she buys bitcoin then sells it most likely she has not even earned any profit.. worse if she even lost money
yeah it is wrong but it is her money i just hope she learns from this experience instead of writing bitcoin off as a scam or something similar

You are absolutely correct George, this is where most people miss it when investing in Bitcoin, putting all their money into Bitcoin without considering that they will eat and do other things, only for them to start selling their Bitcoin when they have needs. This is a wrong approach, instead people should consider keeping some money out of Bitcoin to support their basic needs and also have some extra for use when things comes up that may appear like emergency, this way they will not rush to withdraw their investment at the slightest problem.

You can make many mistakes in your life, in your investment career even you picked a good one for your investment, Bitcoin.

Reason is you can not perfectionize you entries and exits even, as said, you already picked a perfect asset for your investment, Bitcoin. So what can you do?

Take it easy, and do Dollar Cost Averaging for your Bitcoin investment portfolio, and forget about any perfect entries or exits.
DCA is your magic method for Bitcoin investment because Bitcoin moves up with time.
https://dcabtc.com/
https://charts.bitbo.io/yearly-candles/

As  an investor in Bitcoin, most times it is advisable to always start with residual income, finances that you know that will not disturb you at the moment or at the long run, you don't test the depth of a River with both feet's, a proper investor invest with a percentage of his capital, not the entirety. I really don't usually find a soft spot for those set of persons whenever stories like these come up, because I feel they threw caution to the wind. Besides whoever that must have introduced a newbie to Bitcoin, must have also taught him the rudiments of what Bitcoin involves.

Yeah emergency funds is important, you need money in order to pay your monthly needs or urgent needs instead of selling your investment. There's nothing wrong to sell some part of your investment, but the volatility in Bitcoin is high, you might need money when the market in bear season.

Even you've separate money for emergency funds, but not everyone have the same risk taker, they might not able to invest the rest of the money in Bitcoin.

I believe everyone who is venturing into Bitcoin investment always have a guider someone who has been discussing with them about Bitcoin, and of course they wouldn't want to understand how everything works they would hastefully went to make investment without them studying how the market behaves or reacts over some periods of time before moving whatever funds into Bitcoin investment. As they knows, Bitcoin is the right investments but if they don't have spare cash or a reserved funds and emergency funds it's very difficult for such investments to yield something very productive.

Theirs some investment in bitcoin that are financial mistakes...some persons makes a wrong decision when it comes to bitcoin investment, mostly newbies in bitcoin, [for instance] when you have a five thousand dollars [5k] left in your savings account and you were told of bitcoin investment or any other cryptocurrencies investment, I will advice you to invest at least three thousand dollars instead of investing all the five thousand dollars in bitcoin so that you will have reserved to sustain and also you will not be curious to withdraw your investment when it's not yet time to withdraw

So a financial mistakes is when you invest wrongly without thinking of side effects of the investment you're venturing into before you invest, or when you invest on what you don't know the rudiments, and also invest on what you can't manage

So the essence of these, is that, anonymous person who were told of cryptocurrency investment and she choose to invest in bitcoin, and what is left in her account is five thousand dollars [5k] as I mentioned above, and she invested all her five thousand dollars without having a reserved, and after two weeks of investment she started withdrawing her bitcoin to feed, and she continues to withdraw her bitcoin until she withdrew all and left with nothing, for me I would not like any beginner to invest in such method.

From my perspective I think what she did is a financial mistakes by investing wrongly without a proper calculation, so what's your take on her investment in bitcoin?