The Higher the capital the higher the returns - page 8.

CryptopreneurBrainboss

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Quote from: Yucky on June 25, 2024, 01:35:32 AM

THE IMPLICATION IS; Don't chase bigger returns, chase more capital. This is also applicable to How much you invest in Bitcoin and how much profit you can get from it.

It's not always about the capital but capital does play an important part in your ROI. Just having the capital isn't enough reason to expect more ROI, your duration of investment also matters and your market entry too because you can't be investing late and be expecting a more return than an investor that entered the market when the market was at its lowest price unless you'll be willing to spend more. Investing in Bitcoin at $30,000 isn't the same thing as investing at $60,000 If both investors had the same capital. The investor buying at the first price would make more profit if both investors are to cashout during the same time.

Investing isn't all about the capital that you have at your disposal because there are certain investors that have the money but lack the knowledge and aren't doing well in the industry. People are losing money frequently when the market takes a dip because people are closing their position without second thoughts. There are things that makes you a successful investors and capital isn't one of the most important because you can have the capital yet you don't know how to use it. Having the right knowledge is what is more important than having capital because a bonus and makes your investments much easier.

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Quote from: darkangel11 on June 28, 2024, 02:54:05 PM

Quote from: bluebit25 on June 28, 2024, 02:34:16 PM

Is everything so simple?

So where does the capital come from?

Who cares? It's not the theme of the topic.
He told as a very basic truth that when it comes to an appreciating asset like bitcoin, investing more will bring more profit. There's always risk but those who invest know about it.
To be honest, many people have capital lying around, but they don't want to take any risks, even small ones.
What is important here is that you shouldn't focus on saving fiat money. Save in appreciating assets.

Those who don't know their investments well are those who are fearful risking their funds most especially in a volatile asset like bitcoin. And most likely, these are the people who are obsessed in making money through fiat, not in bitcoin where its value appreciates undoubtedly.

Now, talking about bigger capital, higher returns, that's more possible with bitcoin. But if you do it with other coins, I doubt if you can still be as profitable like bitcoin. Don't just invest, but always invest for long term, and bitcoin is a perfect example for that.

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Quote from: Yucky on June 25, 2024, 01:35:32 AM

From basic economic principles, if you have a higher capital, you will certainly have higher returns compared to starting with a smaller capital. If you're just chasing returns or expecting a huge profit margin but pay slight attention to how much you use as your capital, even when you make a profit, the extent of your profit will largely depend on how much is your Capital.

   REMEMBER
   50% profit on $1000 is $500
   5% profit on $100,000 is $5000
      THE IMPLICATION IS;
Don't chase bigger returns, chase more capital. This is also applicable to How much you invest in Bitcoin and how much profit you can get from it.

Situations happen and it's not always the case of the capital but opportunity also matters. If we use Bitcoin as exampl, a person who bought Bitcoin with $1000 around $50k would have a profit of $160 in their wallet by now and a person that bought $100k when Bitcoin was trading in $50k will have $16k as profits right now if we use the current price of Bitcoin, this illustration define the perfect ways of capital importance in any investment you are doing.

However, a person that bought Bitcoin when the price was $1000 for $50 will probably be the happiest person than a person that bought Bitcoin worth of $100k at $20k, this is what I mean by opportunity. It's not necessary that it must be Bitcoin, it can be any other investment, it can be any other altcoins with good opportunity. When you buy them at he right time, you will enjoy more with less risk with the person that bought at the top with huge capital.

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Quote from: Moreno233 on June 29, 2024, 05:07:53 AM

I have also noticed that the more capital available the easier it becomes making more money. In other words, with big capital, the investor can better mitigate risk and explore options that yield lower returns with lower risk. For instance, investor with $500 might not consider buying Bitcoin which many people believe is high priced and cannot easily yield X2 profit, hence such will explore other options such as altcoins or memecoin and will often lose his capital. Meanwhile someone with $500k can just buy Bitcoin and 30% rise in price will give such a big profit.

That makes sense as ive been wondering why people always recommend btc even tho alt will gives more returns, probably because big money is in btc, so in a way it has less risk than an alt?

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No one can dispute the importance of capital in business because it determine the scale of the investment. The more the capital involved, the more the expected profits just like the OP rightly stated, but the risk factor, which was not captured in the post, is also in the same proportion. This means, the more the capital, the higher the amount that will be exposed to risk in the event that the investment goes bad.

I have also noticed that the more capital available the easier it becomes making more money. In other words, with big capital, the investor can better mitigate risk and explore options that yield lower returns with lower risk. For instance, investor with $500 might not consider buying Bitcoin which many people believe is high priced and cannot easily yield X2 profit, hence such will explore other options such as altcoins or memecoin and will often lose his capital. Meanwhile someone with $500k can just buy Bitcoin and 30% rise in price will give such a big profit.

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So anyway, I applied as a merit source :)

You cant just increase your capital like that.

The source of the capital is the already owned money, mostly coming from the person's income. If they have a lower than average income, the capital will undoubtedly be small. It is how we try to increase the corpus - by investing parts of it.

The point raised by @Jawhead999 is pertinent, you need to overcome the inflation rate too, so both capital and the percentage are important but things will vary depending on where you live.

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Quote from: Iranus on June 29, 2024, 03:42:03 AM

Of course, with a larger amount of capital, you will gain more profits, but if you lose, you will also suffer heavier losses, which is obvious because everything is proportional to each other. There is no investment that is both safe and highly profitable and vice versa.
money.

But normally those who have a lot of capital do not risk so much. If you know anyone who works in private banking or investment banking, you will see that the strategies of high net worth individuals are generally more focused on capital preservation than on gaining more capital. With large capital you can live comfortably on income with low risk investments, whereas if you are building your capital it makes sense to risk more, especially if you are young.

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Quote from: boyptc on June 25, 2024, 06:31:22 PM

It's best to start with the little that you can. Most of the big time investors and rich magnates are telling that to anybody.

They have the money to start big but they started with the least that they can.

We understand that the higher capital, bigger return is the logic in investing. But if you don't have that much capital, you really to have somewhere to start with the little that you can.

I believe I that theory you just mentioned " start with the little you have" I think people should learn how to go with what they can afford, although people always like to hear the good and profitable part but refuse to get the whole settings how it is, there is know restriction to individual investment, be it high or small but choosing the strategy that best fit your pucket remains the best approach to sustain your investment, investment is not a competition, is just a way of making profit with what you have in a longterm, lets not always apply listen to influencers or multivatilnal speakers because they are not good example of what they tell us but they convinced you to do things that are not wise when it comes to investment.
In conclusion I advise that investors should invest what they can afford and sustain instead of chasing shadows with unrealizable goals.

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Quote from: mirakal on June 28, 2024, 06:56:22 PM

That won't guarantee in all investmens. In fact, others will only maximize their losses if they keep putting bigger allocation of capital, thus making them more susceptible to big losses. It's still safe to invest an amount that you are comfortable to lose, so you won't end up regretting most of the time because of your unbearable losses. Even in Bitcoin, it's still unsafe investing in a large amount knowing there's no guarantee for future profits.

Of course, with a larger amount of capital, you will gain more profits, but if you lose, you will also suffer heavier losses, which is obvious because everything is proportional to each other. There is no investment that is both safe and highly profitable and vice versa.

Not only with bitcoin, when it comes to investing, every investment has risks including gold or real estate. So don't put all your eggs in one basket and diversification is always necessary in investing. In addition, a smart investor will know how to allocate capital appropriately and with higher risk investments, they should only invest money that can lose money.

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Quote from: justdimin on June 29, 2024, 12:03:53 AM

Would you rather have a bigger capital and be rich while risking more money, or would you rather be poor and risk nothing? I personally would prefer to have 100k to risk 5k instead of having just 1k, it would have been better.

when it comes to investing, percentage of profit or loss comparison just makes more sense in my opinion thus I pointed out the weight of those percentage based on the capital which differ significantly.
for the rich people losing 5k is just losing a pocket change, for the average people its like 1-3 month salary.

I mean to be fair, from long ago, the guy with big capital always got the advantage, its like farming in agricultural sector, the more field to plow, the more overall money as a profit from yield will generate.
same thing with big capital investment, investing $100k alone means we are already putting money at stake worth salary of 20 people, meaning if there's any profit we also gonna get the profit that equates to 20 people.
simple math, not to mention there's also the fact that being poor is expensive, by betting miniscule amount of money big chance our capital just gonna get eaten by fee.

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Quote from: justdimin on June 29, 2024, 12:03:53 AM

Quote from: sunsilk on June 28, 2024, 04:05:03 AM

Quote from: shinratensei_ on June 28, 2024, 03:02:59 AM

You also disregard the fact that 5% loss for $100,000 is $5000 and 50% loss for $1000 is measly $500.

Good analogy.

You have more to lose when you've got bigger capital. And that's the risk that we're talking about, you get a better chance to earn better profits compared to having lower capital.

But the pros of having a lower capital is that you will not feel that much loss when you didn't do well with that investment.

I think that our gains will also depend on our mindsets, if we're real risk takers and get to take risks with higher capital, we'll not feel bad anymore when the market isn't favorable. There's a pain but you'll accept it not too heavily compared before when you're starting out.

Would you rather have a bigger capital and be rich while risking more money, or would you rather be poor and risk nothing? I personally would prefer to have 100k to risk 5k instead of having just 1k, it would have been better.

I think it's an offbeat comparison. It doesn't say to remain poor and risk nothing, even poor people there's a need to risk money for them to gain. But they can't start big compared to the rich people.

Of course, all of us want to be rich and if we're capable of investing big, we'd do that in a twinkle of an eye.

Quote from: justdimin on June 29, 2024, 12:03:53 AM

To be fair, if I had money like 100k, then I would have probably semi- retired as well because it's such a HUGE amount of money for me, like sure I may not be able to actually retire, because at very old age I may need some, but at that time I would inherit some stuff unfortunately, and by that time my money would be enough. So 100k until it runs out, and then inheritance afterwards would mean that I can actually retire if I had 100k. I would probably not risk anything and just keep it at some savings.

$100k might be lower as time passes by due to inflation. But having that money for retirement is really a great start, I might do the same and will do something out of that money.

It won't just sit on the bank and do nothing, I'd get something out of it and earn some interest as cash flow as we get older is king.

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Anyone who knows a little about finance will know that what the OP says is true, but because it is a truism, and as stompix says, what is the way to raise more capital? Generally through returns, or a combination of savings, investment and returns on that investment, I would say.

That's why the vast majority of traders end up broke, because they see videos of how to become millionaires doing a few trades from home, with little capital and leverage, when mathematically the probability of ruin with that system is close to 100%. On the other hand, someone who has $10M in a deposit at 1.5% earns $150K without doing anything (we would have to take inflation into account, but that is another topic).

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Quote from: sunsilk on June 28, 2024, 04:05:03 AM

Quote from: shinratensei_ on June 28, 2024, 03:02:59 AM

You also disregard the fact that 5% loss for $100,000 is $5000 and 50% loss for $1000 is measly $500.

Good analogy.

You have more to lose when you've got bigger capital. And that's the risk that we're talking about, you get a better chance to earn better profits compared to having lower capital.

But the pros of having a lower capital is that you will not feel that much loss when you didn't do well with that investment.

I think that our gains will also depend on our mindsets, if we're real risk takers and get to take risks with higher capital, we'll not feel bad anymore when the market isn't favorable. There's a pain but you'll accept it not too heavily compared before when you're starting out.

Would you rather have a bigger capital and be rich while risking more money, or would you rather be poor and risk nothing? I personally would prefer to have 100k to risk 5k instead of having just 1k, it would have been better.

To be fair, if I had money like 100k, then I would have probably semi- retired as well because it's such a HUGE amount of money for me, like sure I may not be able to actually retire, because at very old age I may need some, but at that time I would inherit some stuff unfortunately, and by that time my money would be enough. So 100k until it runs out, and then inheritance afterwards would mean that I can actually retire if I had 100k. I would probably not risk anything and just keep it at some savings.

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Quote from: bluebit25 on June 28, 2024, 02:34:16 PM

Is everything so simple?

So where does the capital come from?

There isn't a sure recipe to be followed. The source of the capital will depend on each one's personal life, environment, opportunities available and obstacles. Some will face easier conditions to keep that capital flowing, while others will have a hard time. And if the ones having a hard time start complaining, things are going to get even more difficult for them... We can just work with the tools we have available, at least until a better tool becomes disponible, what is really likely to happen if we make some sacrifice on the present moment.

Things aren't going to be simple for most of us, and there isn't any assurance that we will succeed in the end. But what else can we do besides trying? It seems the most logical decision to take: to try reaching somewhere else, even if it's through small steps.

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That won't guarantee in all investmens. In fact, others will only maximize their losses if they keep putting bigger allocation of capital, thus making them more susceptible to big losses. It's still safe to invest an amount that you are comfortable to lose, so you won't end up regretting most of the time because of your unbearable losses. Even in Bitcoin, it's still unsafe investing in a large amount knowing there's no guarantee for future profits.

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Quote from: Yucky on June 25, 2024, 01:35:32 AM

From basic economic principles, if you have a higher capital, you will certainly have higher returns compared to starting with a smaller capital. If you're just chasing returns or expecting a huge profit margin but pay slight attention to how much you use as your capital, even when you make a profit, the extent of your profit will largely depend on how much is your Capital.

   REMEMBER
   50% profit on $1000 is $500
   5% profit on $100,000 is $5000
      THE IMPLICATION IS;
Don't chase bigger returns, chase more capital. This is also applicable to How much you invest in Bitcoin and how much profit you can get from it.

Basically this your idea looks simple to write down but having that much capital is not very easy to acquire. Also investing so much money just to make more profit will lead you to investing more than you can afford to lose and we are all aware of how risky cryptocurrency can be so it’s just more or less like the more money you put in the more money you risk losing. Every investment is risky and there is no guarantee of success so every penny invested should be carefully calculated. Bitcoin is volatile and the market can move in either direction so as much as you expect gain you must also expect loss.

Chasing higher returns and chasing more capital is all aimed towards the same goal which is to make more profit and if you ask me i will say the most important thing is not to be greedy and invest only what you can afford to lose.

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Quote from: Yucky on June 25, 2024, 01:35:32 AM

REMEMBER
   50% profit on $1000 is $500
   5% profit on $100,000 is $5000
      THE IMPLICATION IS;
Don't chase bigger returns, chase more capital. This is also applicable to How much you invest in Bitcoin and how much profit you can get from it.

If we are investing in anything, then we should make sure we consider the risk involved in it. If we are thinking about the profits, then we should also think about the loss. If you are chasing more capital, then you should know that the higher the capital, the higher your return. If you are making money, then it’s going to be massive. The same thing is applicable to when you will be losing, it’s going to be massive also. That’s why we have to be careful. We shouldn’t think about the money which we are going to be using to invest alone, we should also consider the loss.

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Quote from: bluebit25 on June 28, 2024, 02:34:16 PM

Is everything so simple?

So where does the capital come from?

Who cares? It's not the theme of the topic.
He told as a very basic truth that when it comes to an appreciating asset like bitcoin, investing more will bring more profit. There's always risk but those who invest know about it.
To be honest, many people have capital lying around, but they don't want to take any risks, even small ones.
What is important here is that you shouldn't focus on saving fiat money. Save in appreciating assets.

bluebit25

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Is everything so simple?

So where does the capital come from?

Not everyone here has a strong financial position, but I understand the point the OP mentioned and I would like to add one more thing: research to balance the risks. We all know the scary stories of default in the financial world, how people with billions of dollars still face business failure.
So in finance, capital is only a necessary condition but not all that determines your success, when you have $100 you will manage investments differently, when you have $1000 you will invest differently, when you have $10000 You will have other investment management decisions,... so research the suitability for yourself to make responsible decisions.

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Quote from: Raflesia on June 28, 2024, 02:04:38 PM

Its not that we cant deny that the more capital we have, the greater the profit we have, it's just that it only refers to that context because in fact we have to think about how to profit as well because it doesn't mean that with a lot of capital, we will definitely profit and with little capital we will make a big profit because its just a way to look at it from a positive perspective. When talking about business or investment, its not as easy as just based on capital, there are so many things that need to be prepared, there is a plan that we must realize is more important and of course we need several backup plans to support it better because in the end, the benefits of business or other things such as investment are certainly not only based on capital alone. Although capital is important, there are other aspects that support it so that capital does not just disappea .

Yes that's right. To invest or do business, the main thing for making a profit is not capital but knowledge and experience. Indeed, a lot of capital is one of the factors because it cannot be denied that with a lot of capital we can get more profits. However, a lot of capital without adequate knowledge will not work optimally, because as you said, apart from having lots of capital, other aspects are also really needed.

Moreover, if our mindset is that if we have a lot of capital then we will get more profits, this is also wrong because it will make it difficult for us to do something, be it business or investment. Because in general to start both of them you don't need a lot of capital, because with a little capital we can also make a profit, even though it's not a lot, but if we get profits consistently then the profits can also be more.

Topic: The Higher the capital the higher the returns - page 8. (Read 1909 times)