If you have only 2000 dollars to your name, would you invest 1000 of it into bitcoin, is it safe, how much would I gain or lose and how would I do it. Or would some kind of a stock be better and which one?
Should I invest my only money into bitcoin?
byu/FlamingoSoggy8345 inBitcoinBeginners
Posted by FlamingoSoggy8345
15 Comments
yeah but leave it in for 20 years
I believe in BTC but I diversify. Assets, dividends, proven/reputable mutual funds just in case of (name your reason)
If I had $2000 to my name, I would keep the $2000 in a instance access account, then I would start a DCA to invest surplus income, lets say I had $300/month expendable income after living expenses, I would setup a $10/day DCA
Instead of invest on bitcoin, invest your time in financial literacy. Do you keep a budget? Do you have an emergency fund? Have you maxed your Roth IRA or/and matching 401K? How secure is your job?
If you wanna jump into bitcoin because you want get rich quickly it’s better to go to a casino imo.
only invest what you can afford to lose.
Rule 1. Don’t ask the internet, or if you do, ask a disinterested group (like general finance sub).
Rule 2. Learn about bitcoin. Read the white paper, read The Bitcoin Standard by Saifedean Ammous, watch Andreas Antonopolous videos. Once you found out what it is, what it’s for, and how it does it, you’ll buy it anyway.
That’s all really. You’re still early, chill out. Und willkommen, bienvenue and welcome!
To be honest, I wouldn’t invest anything I couldn’t afford to lose in order to limit the need or temptation to pull it back out.
This won’t be popular here, but I can’t see investing than around $200 at the absolute most as a good idea. (Assuming you have a job and can pay your bills and are saving consistently, this is what you have additionally.) People need emergency funds and $1000 isn’t really enough for that with the inflation we have.
You must put in an amount you can truly commit yourself to not taking it out for the foreseeable future given your current living situation. That you would be fine if you lost entirely. Maybe that is $5 for you right now. We don’t know how you’re living. Bitcoin is great but I’m not here to encourage people living precariously to gamble money they don’t have. Better to DCA as money comes in and slowly and sustainably built your stack than to nuke your savings and have to sell at a loss if times get tough.
Ask yourself if you can really HODL. If your mind set is weak then you should not touch Bitcoin. Go buy some index fund or government bonds is not bad. But if you know what Bitcoin is and are a strong believer then sure you should buy it now. It is just the beginning.
If you have to ask, then no.
Make sure you understand bitcoin, and above all, the problem that it is fixing. Once you get it, you will put all your money in bitcoin AND sleep like a baby when the price tanks.
If you put money in bitcoin hoping to get rich, but not undrstanding the fundamentals, you will have a rough ride and probably panic sell with a loss at some stage (ask me how I know).
Why would you put everything/half of what you have into any investments when you can barely afford to live?
Great Question, the answer depends upon multiple variables. Here is some general advice.
1) Do you have high interest debt (9% and higher) and no savings?
If the answer is Yes – Do not invest in any Bitcoin. (you can use bitcoin to save money but don’t speculate with it as an investment)
2) Do you have any credit card debt and fiat savings?
If the answer is Yes ,than at minimum pay off all your credit card debt with fiat savings unless you are in debt to such a degree and plan on filing bankruptcy. Do not invest in Bitcoin until you have paid off all high interest debt
3) Have a lot of low interest credit card debt (below 9%) and no fiat savings?
You should make a budget , cut expenses, and simultaneously start paying off your debt(unless you plan to file chapter 7 bankruptcy) , start saving a fiat emergency fund, and start buying Bitcoin.
4) Have no debt and no fiat savings?
You should make a budget , cut expenses, start simultaneously saving for 6-12 months worth of living expenses in fiat emergency fund (only stable forms of fiat, obviously not the Argentinian peso or Venezuelan bolivar) and invest in Bitcoin, and seriously consider investing in stocks(preferable an index funds like SPDR/SPY or QQQ) or an IRA.
5) You have a large amount of fiat savings and no debt and want to know if its best to dollar cost average invest or invest it all immediately?
The answer almost always is to make a plan and invest 100% of the fiat (not including your emergency fund) immediately in a diversified portfolio of investments that are non correlated (land, stocks, Bitcoin, businesses with positive cash flow) . It is often impossible to time the market and those that invest earlier will gain the most compound interest. The reason why dollar cost average investment is popular and a fine strategy is merely because most people don’t have a large amount of fiat to invest upfront so invest a little each time they are paid.
Thus if you get paid twice a month than what you should do is buy some Bitcoin immediately twice a month and also in addition set buy limit orders on an exchange for 5-10% below spot price. If those orders do not get filled by the following paycheck than buy your set amount and reset the buy limit orders for 5-10% below spot price from the current market price.
The reason for this is 2 fold:
1) you can auto pickup savings with BTC volatility on the dips which is psychologically rewarding
2) If a large amount of people create large amounts of Buy limit support than BTC becomes more stable unit of account and more liquid leading to more investor confidence and making BTC more of a currency(less volatility = better unit of account) and thus increases the likelihood your investment will continue appreciating in value.
The reason having a fiat savings account is so important is it not only will it save you if you lose a job or have an unexpected car expense or medical bill, but that it makes you a more rational investor that is less stressed out by the volatility in your more risky investments like Bitcoin. Bitcoin historically has had at least 4 bear markets lasting a over 1 year thus you need to be prepared to not be forced to sell at a loss for at least 2-3 years to give yourself enough of a buffer.
No, don’t invest what you can’t lose. That is financial irresponsibility.
Yes. And don’t look at it for a decade. You’re welcome.
If you only have 2k in the world, it should remain in your savings account as emergency money. There are far greater risks in life than potential returns. Secure your life and look into growing your income
1k in btc is not going to be life changing. Even if btc 10xes in 2 years, your investment will only go to 10k. Not a bad return, but that isn’t going to change your life.
The boring advice is no.
But if you need life changing money, it’s a hail Mary. I get it.