Topic: This principle works perfectly for all investment decisions: (Read 324 times)

Yes, investing is the most important way to grow your money however when someone saves money for emergency then it should be let at banks as withdrawing money from banks is more user-friendly especially if the bank has many branches in a city.

I know it's also easy these days to convert Bitcoin to fiat but the P2P traders always deduct higher fees as compare to banks and that's why for the sake of emergencies one should let some money in banks and invest rest of it to earn profits from the money.

Investing is the best way to store your money, leaving it in the bank is basically just saying the elite should make use for your money for you because you don't know what to do with it. There are business man taking loans from banks to fund their businesses and they make money from your money that's just sleeping in your bank account which inflation is reducing the value of the money as the day goes by. Money isn't meant to be resting, it's meant to be working for you and not you for it.


I would say trading the fiats for physics assets (like landed property) or trading or for digital assets (Bitcoin) and not trading physical assets for Bitcoin before people get the message wrongly. Anything assets is worth hodling irrespective of what it is. The goal is to get as much assets that we can get our hands on and not trading assets for assets, what should be traded are liabilities because they're worthless. Anything not giving you money isn't worth hodling.

Some people might consider or see money that they keep in their account as being useless and also at same time losing value which make most of them to think that investing all the money in bitcoin is the best thing for them to do and also at same time they could also be afraid of losing everything because it's all about risk and the price of bitcoin can't completely be predicted.
 
The best way to reduce the risk of investing in bitcoin or which ever asset they choose to invest on is to use any portion of their savings which they won't be needing for some period of time that way even if the price of bitcoin is to drop below what they purchase it it won't completely affect them as they will have more time to hold until their is profit to be accounted for.

I agree with you on this. Only risk takers can trade what they already have for something they are not even sure would be more valuable than what they already have. This means risks taking is one important aspect any prospective investor cannot ignore. Even in bitcoin investment, it takes lots of courage for a person to trade his hard earn fiat for bitcoin which they are not even sure would give them more returns.  After all, life itself is a risk, anyone wishing to invest in anything should be prepared for  anything also.  Good enough, there are low risks and high risks investments, people can go for what they are comfortable with. All it takes to make it work is patience, consistency, commitment and determination, then positive results will surface.

Bitcoin comes out first when we're talking about accumulating cryptos, very conditional based on the seasonal changes of the market. Quite good enough to accumulate bitcoin when we're in the bear season and trigger the sell button when the bull market finally comes.

Investment is our intrigued into the space and we used our initiatives to survive in our existence in the space. We all worked and abide by principles when it comes to trading and investment, it's not an easy tasks because accomplishment is more considerable risky and on stake. We utilized our time and resources into creating positivity and profits for ourselves. It's not an easy down path to follow in the crypto space because there's more hurdles on the way than you can possibly imagined.

Investment is not the problems but the main thing should be that let them understand what they are doing to invest. For instance you can't just go investment on something you knows nothing about and expect to get something reasonable inside. People must have basic knowledge to what they want to invest on, like people anyone who doesn't moved by bitcoin investment is certainly do not understand the language of bitcoin so what should they do at this point?

To me is draw their attention to understand the concept of bitcoin which included the risk aspect of it. Let you said above; no one can trade sleepless nights for school if he doesn't know the importance of school or even knows how to read and read. At first what triggers people to go school is when they have the ability to understand what is school, the importance of school and the benefits they would derived after spending several years studying.

Yes that is very correct..
You know what I understand from op is that he is talking about sacrifice, if you don't sacrifice your night for something productive you wouldn't get any results. Just as students do burn their candle reading at night because they need the knowledge and this knowledge could give birth to ideas which in turns becomes creativity to have something productive just as the way bitcoin was created. Satoshi gave something for Bitcoin and today we all are enjoying Bitcoin and it's usefulness.

Perhaps, there might be no guaranty for success and the uncertainty of life are what actually leaked life worth living and purposeful.
Op was actually trying to refer to paying a price or better still exchanging something for another better still a firm of trade by barter and I have to agree with him that, there is always a price to be paid for whatever we desire in life and some persons are already enjoying prices their parents paid for them while others are paying prices for themselves and that if their children.
And just as Troytech has already said, I agree with him that, what an investment needs at the end of the day is to be success regardless of the price they paid.

Because of the effect of inflation keeping money in the bank is not a good idea because with time it will drastically lose value and we all know that bank do not keep money free for customers without collecting charges, that is to say when money is left in the bank for a longtime inflation and bank charges can make the money of no value in the future. Investing money has always been a good idea to grow money instead of keeping it in the bank.

Bitcoin investment can be consider as a store of value for those who can invest their money longterm, this is an investment that is more profitable for money than leaving it in a place that with time it will be depreciate and be of no value.

Because of fear to invest some people believe saving their money in the bank is the best way to keep the money which can be use in the future but fiat will always be fiat because it has no ability to increase in value.

I completely agreed with you, op seems to have forgotten that in as much as it is good to encourage investment ideas there are reasons for holding money at hand and that of the bank, certain level of clarity should be made as regards to money that is meant for investment, the truth is that money at hand or in the bank is never a liability and can never be, some times money is held at hand for emergency, plans should be made separately as regards to investment money which should not be compared with the money that should be held at hand or money in the bank.

you're absolutely correct. If you make the mistake of assuming that money left in the bank is a liability and invest all your money into something without keeping some spair ones, when emergency comes in and you need cash to enable you solve those problems, that's when you will know the importance of reserving some money in the banks. Even though keeping money too long in the bank without delegating part of it into something else is bad, failure to moderate how much from the money you're to allow in the bank will cause harm to you. As a business person or even a private individual, money need to be kept separately as money in circulation that will be used to Carter for emergency situations when they arise.

I think I can agree with you in terms of contextual meaning of terms, trading can mean giving up something in order to gain something else, so when you give up your time, sleep or even habits for something more profitable, then you traded it for the other thing.

It's very pertinent that we trade things of less value, or are more in abundance for things that are of higher value and limited in supply and if I can borrow your words, trading out fiat for holding good stashes of Bitcoin.

Such useful activities would not only secure our future, but increase our personal qualities as individuals.

That you have some money that is left in the bank or at hand doesn't mean it is a total liability to you, banks may not add anything to the money left in their custody but you don't need to invest everything you in the name of making profit because some times you may need some money to take care of an emergency and doing some bank transactions with the help of the savings there can help you to sort out the things faster. Not going against having a good investment but when investing I think we should also consider some urgent needs in the family that may require urgent cash at hand to sort them out so I think we need to do a little investment and have some spare cash in the bank and at hand in case of some unforseen occurrencies.

Investment is good and we all know that without it, it's hardly for us to be wealthy or feed our families, but saying it as if keeping money in the bank or having cash at hand is a liability, is totally a wrong notion and can be misleeding. Despite how the money kept in bank doesn't yeald a reasonable amount as interest does not mean we can't keep money in the bank or any online wallet, you should understand that not all money can be invested. some should be kept in the bank or held as cash to solve some problem when you can't touch your investment money. It has been said repeatedly that Investing in bitcoin requires having a discretion fund to be able to keep accumulating. So if I may ask where  do you think the discretion fund is kept? Bank of course ... So Invariably it is unwise to use all your fund for investment. Though I may have described my explanation through bitcoin investment but it is applicable to all investment sectors.

This make sense for me a little because, you must understand the market dynamics, like when to buy, sell, or hold, how it works, and how volatile the market is in cryptocurrency.
Trading skills become crucial because the cryptocurrency market is extremely volatile, and even let's say having little knowledge or say knowing how to trade will help you to success in an investment.

That's true and I explained it earlier. Trading includes in investment and with investors, they make less buying and selling because the main concern of investors is holding and waiting for portfolio value to grow up.

Investors do sell their coins but they only do this at very sparsely intensity and experienced investors will reduce their trading time because with experience, they know that if they involve too much in trading, they will forget their main strategy and purpose is investing, holding to get profit.

The OP did not mean trading. What he meant is that anyone that wants to invest in anything (like cryptocurrencies) will first have to buy the coins with something. Assuming you bought the coin with fiat, that means you traded fiat for bitcoin. I hope you can understand what the OP meant now. His topic is all about investment and not trading.

For instances like this, when you trade your fiat for bitcoin, that doesn’t mean you can get something out of it of more value as expected. Bitcoin is an investable asset and is not something you can decide when it’ll move and grow up in price. So investing in bitcoin and wanting the result to be gotten in a few years should not be thought of but more focused on long term investment.


I like your idea but you’re making it look like it’s very easy to do which is not. You may have the knowledge and that doesn’t mean you can get money out of it. To get away with an inferior item and go for the superior ones have to be done technically and just not for the name of it or what you wish to achieve from it sooner. Anything that good don’t come that easy and should be taken with caution.

Technically, you are right about investment and trading because by definition, trading is simply buying and selling of goods and services. In that direction, investment simply means converting ones money into something else and hoping that the assets acquired will appreciate in value which is how profits are made.

However, for the sake of this forum, there is a clear distinction between investment and trading. Investment has to do with buying something or putting money into an asset be it Bitcoin or other cryptocurrency and holding it for a reasonable length of time for it to generate profits whereas trading is a short time activity that is done to to profit from the market. Both activities have different approach as well as different risks, hence to start any of them, the relevant information must be gotten.

While that's true your cash needed to be put into an asset to make it valuable. But I disagree about having money in the bank as a liability. That cash there could be your emergency fund and can be your liquid money whenever you are in need.

But you have no control over what you trade for. After trading or buying the asset that you want, you have no control over its market and success won't be too easy and we all know about it. You're talking about someone investing and then becoming successful when they know about the key principle. No, it doesn't work like that.

It's a general description of trading. But it takes time until someone masters it and has something to take as per good results. It cannot be learned overnight but you're right about gradually learning it. And, it's not for everyone to learn.

Yes and that's true because they were just left in the bank or at hand doing nothing and such does not provide us any earning opportunity either, but at the end of the day, we may result in spending them and that's all.


This is only possible as well if we are investing on the right asset, if we choose right we are going to enjoy the benefit of what we have made as a choice, many will prefer investing on bitcoin because they knew about how it could render them the expected returns on their investments.

Investment includes trading I can say so. Because with investment, you still need to do two things: buying and selling, combine them you will have trading. But with investment, you are not seriously buying and selling with high intensity like trading.

By this thinking, I disagree with you that people don't need to know about trading before they can start investing.

Awesome crypto trading.

It's only a liability if this money is attracting things such as maintenance fees, which is why some people avoid holding funds with bank's!!

And you are right about one thing, "investment is the only way to convert your cash into a valuable asset" simply put, you need money to make money!!

You lost me here for a second... Are you saying everyone that wants to make an investment needs to know how to trade If that's a yes then I don't agree with you!

Just so you know, exchanging your Fiat into Bitcoin is not trading, its easier to spot trade your fiat for other assets and that doesn't make you a good trader, the comparison is night and day, also you mentioned that one need to trade before investing? That's so wrong.

Investing requires your fiat for an asset and you hold for as long as you want, but trading is using your asset to predict the market, meaning you can lose everything in a single day if the market decide to go against your prediction.

Holding is more safer than trading, meaning investment is safer than trading, and you don't have to know trading before you can invest especially in crypto coins.

To be frank, it is not abolishing or not a good thought of having our money stored in the bank or it feels discouraging to hold our monies of fiat but though, agreeably, money not ready to be in used or having bank as your monetary saving methods is a waste of time because it is either diminishing in values or it is stabled despite how long it might have been in there of the bank but when stored in bitcoin and give it such a long time, definitely it would provide you the benefits of valuable storage technology such as increase of values.

You have a good point just that you make it sound like once you invest in anything you would definitely be successful. It's actually easier to keep your money than to invest it. It takes another level of understanding and discipline to invest very well. I have seen people who were better of before the invested because they invested poorly and on the wrong things.

Top billionaires in the world today majority are investors either they invested in their own idea or some elses.

By best principle for investing is having your own plan, you need to have something you want to achieve (a target, a goal) this lays the background for every other things.

Money will run out and your money will not be valuable if you don't make it an asset that can make it a hedge. The money in the bank with the purpose of investment is not yours but belongs to the bank with the terms and approval that you have signed. There will be a requirement that you must fulfill when you want to make a withdrawal.
And it is true that investment is the best way to turn cash into valuable assets, but don't deal with banks.

Buying without selling is not trading and for anyone to invest you need to have a source of income which from there you can generate your capital from to invest with.

Bitcoin investment is the same, you must have a discretionary income in which you will use to invest in bitcoin and hodli for a long-term and at the same time grow your bitcoin stash to a certain level overtime before you can call it an investment because it is for the future.

One can invest in himself by gain a skill or degree in which he can use to earn a living in the latter.

I don't understand how and where this statement is coming from. That before you invest, you first have to trade. Trading is just a different thing from investment and one doesn't depend on the other to happen.
One can be;
An investor;
A trader;
An investor and as well as a trader.
We should atleast be very knowledgeable of a principle before we teach others same.

Your money at hand or in bank, is not liability, I am sure with you about it.

It's only one problem when you leave your money in bank, it's not your money because the bank, government can seize your money in your bank account. It's very unsafe. It is like you store your bitcoin in centralized exchange and you don't have private key, hence you can lose your bitcoin anytime.

Reminder: do not keep your money in online accounts

Your money at your hands, is your money, before you lose it somehow.

Last time I checked on the internet the definition of trading is - is the buying and selling of securities, such as stocks, bonds, currencies, commodities, and derivatives, with the goal of making a profit. Perhaps your trying to generalize the fact that everyone undergoes through the process of trading as long as they want to start their Bitcoin investment.

Your points are clear. What an investment needs at the end of the day is a successful  investment whether he chooses to trade whats not valuable to purchase available assets. This principle is still not a guarantee for success in the investment.

Money left at hand or in the bank is a liability and this is the reason why the subject of investment can't be overemphasized because investment is the only way to convert your cash into a valuable asset.

Investment doesn't work independently of trading. Before you invest, you first have to trade, and that's the key principle of a successful investment "You have to know what to trade for what"

 So here's how it works, you have to learn how to trade a less valuable item for a more valuable one. When we convert our fiat to Bitcoin, we are in essence trading what's less valuable for what is of value in the future. And there are lots of other instances like this.

It could be as gradual as trading your sleepless nights in school for knowledge and then trading the knowledge for some fiat and then trading the fiat for an affordable physical asset and then you can trade the physical asset for a good digital asset class like Bitcoin or something of that nature. The whole scope is to be ready to do away with an inferior item for a more superior one.