Don't invest recklessly

[Anonymous No.25349862]

I posted about this just a few months ago, but I feel that it's necessary to repeat. The Bitcoin price is on an unbelievably ridiculous upswing which is rather likely to be a bubble. If you're trying to get rich quick by dumping your retirement funds into BTC at $10k, then your "investment strategy" is not much better than someone betting everything on a game of roulette. High-risk-high-reward investing is not necessarily bad, but you have to seriously look at your thought process to make sure that you're not:

>Being blinded by dreams of getting rich quickly, similarly to people who dump money on very-negative-EV lottery tickets.

>Getting wrapped up in "HODL" memes, reddit comments, and other groupthink, which is sometimes fun, but absolutely the last appropriate source of investment advice.

>Acting based on panic thinking like, "OMG the price is going to $1 million and I will miss my chance forever if I don't buy right now" or "OMG the price is going to $0.01 and I will miss my chance forever to retain some value if I don't sell right now".

>Investing more than you can afford to lose. Bitcoin is HIGHLY, HIGHLY speculative. No investment advisor would tell you to put all of your life savings into MSFT or whatever, and MSFT has a market cap 4x larger than Bitcoin. Although I believe that it is very unlikely, there are several ways in which the value could drop precipitously, even to zero. For example, there is no mathematical proof that the cryptographic algorithms used in Bitcoin are actually secure -- they are merely believed to be secure because nobody has been able to break them after many years of intense scrutiny. (I'm not here recommending "diversifying" into altcoins -- altcoins are almost all complete trash, and price-wise they follow BTC but with even more volatility, so they're not really useful for diversification.)

[Anonymous No.25349885]

It is entirely possible that the massive price increase of this year is based on lasting fundamentals. In addition to things like the fairly recent subsidy halving, the defeat of B2X, etc., the world fiat-based economy is in many ways on very shaky ground, and getting worse all the time. There are many good reasons why BTC should have a larger market cap than every fiat currency combined. It's even possible that the price will increase quite a bit more from now. But for goodness sake, don't think that Bitcoin is the first-ever infinite-money generator that will continue to rise exponentially forever (in real terms). I can nearly guarantee that there will be a large and long-lasting crash/downturn at some point. Maybe it will be $10k to $5k, maybe it will be $50k to $30k, who knows. But if you're thinking for example that the current $5k+ price range is absolutely secure after only existing for a few months, then you're traveling blind through very dangerous territory.

Some points to consider:

>Buying near the ATH is very risky, and while it can be correct/profitable, it puts you on the wrong footing. You need to buy low and sell high to make money.

>On 2013-11-29 (exactly 4 years ago) the peak ATH hit $1163, and then fell to $152 by 2015-01-13. That's a drop of 86.9%. Imagine this happens again: The price drops sharply to $2000 or something and then just continuously decreases down to a low of $1,432 (an 86.9% reduction from today's ATH) over the course of a whole year. I'm not saying that this will happen, but it's happened once and it can happen again. Could you survive this?

>Bitcoin is experimental, and it is probably imprudent for someone who is not a true believer in the soul of Bitcoin to invest a lot into it. For example, I personally wouldn't invest more than a few percent of my total assets into ETH even if I felt very confident that it would rise in price because I simply don't believe in its philosophy or long-term value.

[Anonymous No.25349907]

>>25349885
To reduce risk, it is frequently recommended to allocate assets by percentage, and rebalance upon large price movements. Eg. If you previously decided that you want to allocate 50% of your wealth in BTC (because you are a super big true believer), but BTC is now 90% of your wealth because the price increased so much, it may generally be advisable to start selling to rebalance your BTC allocation back down to 50%. I'm not saying that it is always absolutely wrong to have 90% of your assets in BTC or whatever, but it should be because you are intentionally choosing to do so, not because the price got away from you and you never really considered that you now have 90% of your wealth riding on one thing.

>Avoid panic buys and panic sells. Dollar-cost-averaging over a long period of time is often a good strategy.

>Nothing rises in real value to infinity. That's impossible. It is possible that 1 BTC could someday be worth infinite dollars, but that just means that dollars are worthless in that hypothetical scenario. BTC probably does have plenty of room to grow in real value before it completely takes over the world, but keep in mind that there is a ceiling.

>If BTC were to reach values like $100k-$250k, that'd probably cause/imply that the prevailing economic regime has completely fallen apart. At some point in that price area, people around the world would probably lose substantial faith in fiat currencies. A good result, but ask yourself: do you expect the prevailing economic regime to go down easily?

I'm not telling you to buy or sell, and I'm not giving financial advice here. I'm just urging everyone to think rationally, not emotionally or recklessly.

[Anonymous No.25349913]

The thing is, I still don't believe normies are buying.

Are they buying? No news mentioning it, I don't see newfags like before.

Is it institutional money that is pushing the price? I cannot believe it is the normans

[Anonymous No.25349950]

>>25349913
I dropped 2k CAD on BTC this week and I don't know nothing about nothing

[Anonymous No.25350081]

>>25349907
You're absolutely correct, and hopefully you save at least one person from doing something stupid, but I'm afraid your advice is going to fall on deaf ears. Just look at how many people start screaming NGMI or GO BACK the second anyone brings up something as basic as an emergency fund.
Biz is largely filled with people that hate their jobs, saw the 2017 bull market, are dumb enough to think they can time the exit, and are convinced that they're going to be millionaires banging Instagram sluts. You can't argue with people like that, because it doesn't matter whether the dream is realisable in the future or not. They need the dream to survive the present. So while they scream about being based, they've fully taken the blue pill and refuse to accept that they're going to need to work and invest smartly to survive. Many such cases, sad.

[Anonymous No.25350175]

>>25349862
>>25349885
>>25349907

>Telling cryptoschizos their shitcoins might not go to $1mm

Basically the same as telling degenerates about the bible (pic very related). I applaud your attempt to rescue these lost souls, and hopefully it gets through to some of them, but I fear that they're mostly just going to call you a wagecuck and larp about what yacht they're going to be as soon as their shitcoins reach enlightenment and global peace is attained

[Anonymous No.25350254]

>>25349913
It’s easy to pump something when the underlying asset used to purchase it (usdt) is just printed at will

[Anonymous No.25350395]

>>25350175
It's really a good litmus test for whether someone is an investor or not. You can certainly argue that parts of it are out of date, but the fundamental philosophy is still intact, and that's why the get-rich-quickers hate. They used "it's a of Boomer book" as a shield, but it's the timeless aspects the hate.
Now if you'll excuse me, I'm overdue for my WHAT THE FUCK IS THAT.

[Anonymous No.25350503]

That's a lot of words for not much actually being said.

[Anonymous No.25350542]

>>25349862
>retirement funds
You guys aren't using your university funds?

[Anonymous No.25350634]

>>25349913
Its also wanting to buy into other things. Want to buy altcoins or short BTC? Well you sometimes have to buy the BTC to trade first. Ive often bought it to right away spend it.

[Anonymous No.25350657]

>>25349862
All profit comes from scamming retards into exchanging their real money for worthless monopoly money by making them expect that there will be an even bigger retard who expects a bigger retard who expects a bigger retard....
Crypto itself is fundamentally a bubble.

[Anonymous No.25350671]

put 80k into xrp because I'm a moron. down to 50k now. should I wait for poompas or just gtfo asap?

[Anonymous No.25350681]

>>25350657
False.

[Anonymous No.25350737]

Ngmi

[Anonymous No.25350757]

>>25350681
Dude, be a little selfaware, you all you want from crypto is waiting for another retard who buys your play-money for real one (fiat), literally every other coiner is like you, it's a pure speculation tool with nothing backing it.

[Anonymous No.25350758]

>>25349862
>>25349885
>>25349907
Just another faggot shill trying to get normies to dump their BTC.
>be careful guize
>we're at ATH of last cycle so that must mean collapse is imminent
>let's all sell together at $30k, heh heh...

[Anonymous No.25350799]

>>25350757
No one is ever selling their btc, we’re buying out of the system. Cya all in city dale

[Anonymous No.25350810]

This saturday there will be a massive coordinated pump and dump for the DLT token.
The PnD will happen on Binance, DLT/BTC trading pair. Find more information on the Pump and Dump Discord with over 100k members:

https://discord.gg slash sHDW9b3P26

This is a real opportunity to make guaranteed profits with no effort. Forget gambling, the gains are free (assuming you're not a retarded fuck and know how to buy and sell quickly).
Don't miss it.

[Anonymous No.25350838]

>>25349907
Tl;dr

Op is gay

[Anonymous No.25350889]

>>25349862
>>25350081
Based anons don't the right thing. /Biz is full of desperate poorfags that get outright aggressive when anyone advises caution. Hopefully at least a few read this and don't ruin their lives with some reckless gamble.

Not saying btc is gonna dump but it's a possibility and anyone that acts like they know with certainly which way it's going to go is lying or dunning kruger.

[Anonymous No.25351295]

>>25350889
You sound desperate to fud people out of their BTC. What drives you to be such a massive faggot?

[Anonymous No.25351407]

>>25350810
>DLT again
Bull shit

[Anonymous No.25351546]

>>25349862
OP converts his BTC to fiat AAAAHAHAHAHHAHAHAHHAHAHHAHAHAHAHHAHAHAHHAHAHAHAHHAHAHAHAHAAAA WHAT A FUCKING RETARD OOOOHOHOHOHOHOHOOOOOO

[Anonymous No.25351610]

>>25350810
how do you know it will be DLT?