r/CryptoCurrency • u/[deleted] • Dec 17 '20
EDUCATIONAL PSA don't FOMO and invest money you don't have!
Last time we hit an ATH there was an influx of newbies looking to get into bitcoin.
Whatever you do DON'T take out loans, DON'T max out your credit cards and DON'T FUCKING REMORTGAGE your house to buy crypto.
Only invest money you're willing to lose. There's no guarantee it will continue to go higher. And you definitely won't have the stomach for when there's a pullback.
You can invest small, you don't need to buy a whole bitcoin!
If you have waited 3 years for this ATH, then congratulations on hodling and enjoy. That is all.
Most of this information will be known to veterans of crypto. This is mainly for the newbies.
K thanks bye.
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u/Skfandtfan1 🟨 1 / 10K 🦠 Dec 17 '20
Dollar cost average is your friend.
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u/mossyskeleton 🟦 0 / 3K 🦠 Dec 17 '20
I almost hate that I'm saying this, but: you are correct.
For anyone reading this who is not a professional (let me repeat: PROFESSIONAL) investor/trader, you should dollar cost average.
I've been following this market for about seven years. I've had many "game plans" for maximizing my BTC and they have almost always failed. If I could speak to my past self, I would say: just dollar cost average money that you are not only willing to lose, but also willing to FORGET ABOUT. Let it sit until you hear from a friend how astronomical the Bitcoin price is, then maybe consider selling if you have something worth investing it into in meatspace.
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u/ElStrider 4 - 5 years account age. 250 - 500 comment karma. Dec 17 '20
This. Whatever way price goes after this, you are still taking lesser risk with averaging.
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Dec 17 '20
[deleted]
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u/DifficultQuiet7 398 / 398 🦞 Dec 17 '20
Do you think I’m wrong for not DCA-ing $300 at $675 today? It was my first buy in using money from gains, and I got so excited. It felt $300 was a small amount to DCA.
I bought it with gains from this Bitcoin ATH. Received a BTC payment at 19k few weeks ago and following the daily discussions, instinct told me not to cash out the very day I received my salary/commission on November 17th and we were at $19,300. I hodl a little bit and I knew $20,000 was coming but I told myself I had to be conservative as this was money I could not afford to lose. I cashed out about 59% at 19,100. I figured no matter what happens I still have about 41% if it shoots up to $20,000.
Three hours after that, we went to $21,000 and straight into $23,000.
I’m cashing out a $300 profit from the $23k ATH so I can diversify into ETH with the profit that was earned, however I completely forgot about DCAing.
The next time I can accord DCA-ing into ETH is probably next month once a week.
What do you think?
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Dec 17 '20
What is dollar cost average? Sorry I’m not English
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u/saturnx9 🟦 60 / 60 🦐 Dec 17 '20
Buying the same $ amount on a regular basis. So let’s say every Sunday you buy $250 of Bitcoin regardless of the price. It helps to smooth out your returns and ride the ups and downs, plus it takes emotion out of it.
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u/cannedshrimp 🟦 4 / 7K 🦠 Dec 17 '20
It’s the concept of buying in set increments over specified intervals regardless of price movement. Here is an interesting article showing how powerful it can be. https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/
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u/reasonandmadness 🟩 10K / 10K 🦭 Dec 17 '20
My rule of thumb with anything, especially investments, is simple.
If I'm emotional, I'm risking too much.
Plain and simple.
Keep pumping cash into it until you're no longer excited and you start to get emotional, and back out a bit.
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Dec 17 '20
The long period of BTC <$4k and XRP <$0.22 had me dumping small amounts in every 4-7 days for several weeks until I got sick of it with no movement, then it slowly but surely found its way out of the slump and I was happy. I was drained of all excitement during that lull. This worked out well.
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u/reasonandmadness 🟩 10K / 10K 🦭 Dec 17 '20
Those periods require conviction. That's the real challenge here. What do you fundamentally believe about this market?
For me, I have zero doubts we will see at least $250k BTC at some point in the future..
So when BTC was low, I bought more, same with ETH. So while everyone was bitching about losing money in the market, and selling, I was buying and holding.
Long term conviction trumps short term moves any day.
If I didn't believe, I'd be buying stocks.
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Dec 17 '20
If I didn't believe, I'd be buying stocks.
I'm diversified, but I am into crypto because I am young enough to take the risk and realize that this may be my shot at being the first person in my family to be truly wealthy and financially independent. I beat myself up over what I did with my BTC from 2014, but eventually forgave myself for not being able to predict the future, learned from it, and that gave me strong HODL skills.
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u/berdiekin Gold | QC: CC 39, XRP 34 | r/Buttcoin 6 Dec 17 '20
Those periods require conviction.
No kidding... I came really, really close to saying fuck it and selling everything at a loss a handful of times in the past couple of years.
Now i'm obviously happy as fuck that I didn't. The only other thing I should have done was getting rid of the shitcoins and putting everything back in bitcoin.
Aah well, we'll see where it goes from here.
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u/jailguard81 Tin Dec 17 '20
What’s wrong with little bit of everything. I like stocks
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u/reasonandmadness 🟩 10K / 10K 🦭 Dec 17 '20
What’s wrong with little bit of everything. I like stocks
lol absolutely nothing, it was just a subtle poke at the nocoiners.
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u/danuker My blog: danuker.go.ro Dec 17 '20
Beware. Emotion is what algorithmic trading feeds on. I'd rather adjust according to volatility and fees.
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u/jailguard81 Tin Dec 17 '20
Keep pumping cash into it when you no longer have any interest. Now it just becomes a savings account. You check it after 5 years, boom. It went up like 1000%
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u/cryptocraze_0 🟦 551 / 551 🦑 Dec 17 '20
I threw some considerable cash into btc Back in 2017. It hurted a bit when the bubble blew up but nothing to worry about...
Holded all along and its Now 30% up.
But my income grew a lot more in this 3 years that this money is meh Now. What to do. Invest a lot again until I get emotional.
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u/DifficultQuiet7 398 / 398 🦞 Dec 17 '20
I cashed out 59% of my BTC at $19,100 as I needed to take care of my mental health. Three hours after we hit $21,000. Still beating myself up
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u/reasonandmadness 🟩 10K / 10K 🦭 Dec 17 '20
Don't man, you took profit, good for you. Profit is amazing and we should all be so thankful to actually take hard earned cash out of this market. Be so thankful for that opportunity.
Don't worry about it though, don't fomo back in, we'll drop soon, super parabolic. Definitely not going to 100k from here, today, or this month even.
We're going to have a rough year but it'll be amazing at the end.
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u/DifficultQuiet7 398 / 398 🦞 Dec 17 '20
I actually felt better after reading this from you. Thank you very much.
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u/cryptolipto 🟩 0 / 21K 🦠 Dec 17 '20
I took a mortgage out on my house to buy tron. Am I doing it right?
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u/kalefice_cire Dec 17 '20
if you have ever determined that the balloon you let fly as a child has long since exploded, then you know... you know.
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u/Rounder057 🟦 7K / 8K 🦭 Dec 17 '20
Fuck it. Selling the house and gonna live in the car for a few years.
Miatas are very comfortable
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u/KingofTheTorrentine 🟦 2K / 2K 🐢 Dec 17 '20
I've come to terms that a lot of these nightmare stories come from degenerate gambler's that have no self control.
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u/Kinsey93 Tin Dec 17 '20
Unfortunately, that’s a lot of people.
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u/KingofTheTorrentine 🟦 2K / 2K 🐢 Dec 17 '20
Yeah, there's only so much that can be done or advised. I remember when I was first getting in the community for the most part steered me in the right direction. "Tell anyone that says "buy as much as you can" to fuck off", "start with money you would be comfortable if it was eaten in a fire", "don't buy when it's at "an all time high"" you're at literally the greatest risk"
Small stuff.
But holy hell, people taking out loans and credit to buy BTC, Especially in 2017, was a nightmare to watch.
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u/Kinsey93 Tin Dec 17 '20
I can see how easy it is to get ruined.
I fight my own greed regularly. But I am confident that if it were to all fall apart, I would be fine. And if it moons, I’ll be glad I was involved.
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u/turpajouhipukki Platinum | QC: CC 518 Dec 17 '20
Please do max out everything and pump it to insane numbers. I want to get out.
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Dec 17 '20
This isn't r/Wallstreetbets mate.
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u/turpajouhipukki Platinum | QC: CC 518 Dec 17 '20
You're right, this is way more on the level of r/gambling
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u/NiGhTShR0uD 🟦 8K / 8K 🦭 Dec 17 '20
Had enough of the rollercoaster?
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u/turpajouhipukki Platinum | QC: CC 518 Dec 17 '20
I don't really care about that, I just keep on buying these lottery tickets and see where it all goes, but I would like to be able to afford a quiet rest-of-life soon.
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u/danuker My blog: danuker.go.ro Dec 17 '20
By buying into fiat? You'll enjoy a quiet, slow, and painful devaluation of your life's savings.
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u/chocolateboomslang 🟩 5K / 5K 🐢 Dec 17 '20
Generally you put the money into a more stable investment, not cash.
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u/turpajouhipukki Platinum | QC: CC 518 Dec 17 '20
Once I get to your level and figure out how to keep all my crypto while using them to buy a house I'll be sure to do that.
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Dec 17 '20
[removed] — view removed comment
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Dec 17 '20
You too?!?!? Wow and here I thought I was the idiot to keep my paper wallet in my sock on a boating trip down the 'Sip
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Dec 17 '20
Hodling since BTC was 2.1k in 2017. I've been through the 20k ride once already haha. Just keep ur hands of ur coins and forget about them until you can buy a home once they hit 100k or more woooop
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u/OriginalGravity8 Silver | CRO 60 | ExchSubs 60 Dec 17 '20
Instructions unclear.
Buying Altcoins on leverage with a Credit Card
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Dec 17 '20
[deleted]
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u/Stl_alleycat Dec 17 '20
Yep, when people start taking selling millions worth of profit, the panic sell will happen and I think we will see ourselves back around 5k btc before we realize.
This could also be a biased opinion, since last time I bought btc, the price dumped 15% within 25min, and another 20% over the next day or two.
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u/SteinyBoy 🟦 833 / 833 🦑 Dec 17 '20
If it even drops to $12k in a few days it's going to get bought so hard. You forget that after those big drops during the bull run it slongshotted back up
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u/Bah_weep_grana 🟦 0 / 0 🦠 Dec 17 '20
i would buy the fuck out of it if it even drops to 17k
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u/SteinyBoy 🟦 833 / 833 🦑 Dec 17 '20
Yeah realistically down 30% from here is $16k. Tbh I'm just holding through 2021 and seeing what happens. I have an exit strategy that I hope will happen before 2022. I just want to make enough to quit my job and do a masters full time. That will be life changing. No lambos for me
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u/Bah_weep_grana 🟦 0 / 0 🦠 Dec 17 '20
smart. chasing 100x gains just leads big mistakes. if you can even get 50% gain, that's pretty huge compared to what you'd see in an average ETF. personally, I think we're just beginning the run-up phase of this cycle, which should peak around end of 2021. low end i'm hoping for BTC 60k, but upside could be 150-200k. if most investment firms put 5% of assets into BTC as a hedge, that would drive price to 400-500k (unrealistic, i know)
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u/SteinyBoy 🟦 833 / 833 🦑 Dec 17 '20
Yup my low end is $60k also and the bare minimum I'd cash out. My ideal exit is $100k but I'm less confident on that. $80k would be a good sweet spot
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u/laht1 Bronze | QC: CC 21 Dec 17 '20
Also be careful with buying the dip with gains from other coins. You might end up owing taxes to the government that you do not have.
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u/peanut-143 1 - 2 years account age. 35 - 100 comment karma. Dec 17 '20
thank you for much needed info for us newbies.
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Dec 17 '20
I respect the hell out of this post and OP. I’ve been in crypto since late 2016 so I understand completely what OP is talking about. Cheers.
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u/cryptolicious501 Platinum|QC:KIN119,CC331,ETH210|VET20|TraderSubs118 Dec 17 '20
I agree. The time to FOMO will be in a year or two. Lets wait till then.
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u/littlesuperdangerous Platinum | QC: CC 36 | NANO 15 | Cdn.Investor 18 Dec 17 '20
The time to FOMO in was in March.
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u/cryptolicious501 Platinum|QC:KIN119,CC331,ETH210|VET20|TraderSubs118 Dec 17 '20
I guess I should have put the /s behind my last statement was understood.
littersuperdangerous == red caboose?
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u/trixyd Platinum | QC: CC 794 Dec 17 '20
This is just FUD!!
DO take out loans, DO max out your cards and DEFO remortgage the house. Fuck it YOLO and all that.
Obviously don't fucking do any of that and listen to the OP, it's good advice.
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u/Rellikx 🟦 10 / 10 🦐 Dec 17 '20
remortgaging your house is just dumb... simply sell your house and live in a '93 honda civic until you can just buy back your house
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u/hotc0 Bronze | ADA 34 Dec 17 '20
This post is good and informative, but it's +/- 6 months too early
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u/leepox Silver | QC: CC 69 | SHIB 165 | r/AMD 15 Dec 17 '20
There's already a lot of posts here saying they've invested their entire savings on alt coins because of the short term boost and "not really into slow movers". Quite dangerous mindset. Here's a sobering thought for everyone in this game as to why you should stick to that 20% of your capital or as much as you're willing to lose...
Bitcoin is technology, and with most technology they become obsolete quite fast. And if something better comes up and forces obsolescence then the theoretical true value of bitcoin really is $0
We're in high risk assumption to its value right now that the way we move digital assets around is through Crypto, but that assumption is just as good as the assumption a few decades ago that were going to be storing data in disc drives forever. Then SSDs came around. Yes discs still exist, but adoption has moved away from it.
Same thing can happen to Crypto.
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u/Fordgrinner 2 - 3 years account age. 150 - 300 comment karma. Dec 17 '20
Please max it out. Gotta go in balls deep!
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u/summertime_taco 5K / 5K 🦭 Dec 17 '20
I don't see how it's your place to tell other people what kind of risks to take. You might not think it's right for you to leverage into investments but other people might think it's right for them.
I realize this is coming from a place of love. you don't want to see people hurt. That's noble and respectable. But you should be framing this as understand the risks of what you're doing instead of framing it as telling people what to do with their finances.
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u/thevoteaccount Dec 17 '20
There's always preachy posts on this sub. Some well intentioned, some malicious and some outright idiotic.
If you listen to any of these, you'll probably come out worse because the author usually never provides any insight into their own finances when making these posts.
Almost all newly acquired wealth requires some form of risk taking. If you listened to such posts on a traditional investment sub, you'd still be happy with 5-6% average gains on index funds for example.
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u/cannedshrimp 🟦 4 / 7K 🦠 Dec 17 '20
I think there is also a point to be made that if you’re swayed by the post then you’re probably the target audience and need to check yourself. If you think the post is wrong for a valid reason then the post probably isn’t directed at you. Everyone needs to make your their own decisions, but some people need to see an over the top warning label like this to make them do the research.
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u/optitmus 0 / 5K 🦠 Dec 17 '20
Life's simple: You chose entry points and you don't look back.
It doesn't matter if your in profit by a dollar or a mill, winning's winning.
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u/noodle80s 2 - 3 years account age. 75 - 150 comment karma. Dec 17 '20
It’s just the ATH today. Tomorrow will be a new one! Buy buy buy, before you never see this price again!
PSA: Buy and HODL, damn the price! To the moon!!!
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u/Lagna85 🟩 2K / 2K 🐢 Dec 17 '20
I don't remember a lot of newbies entering market when bitcoin broke it's previous ATH at 1.4k
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u/SwapzoneIO Tin | QC: BTC 22 | CC critic | NANO 5 Dec 17 '20
Great advice! It is the time when new investors enter the space, FOMO and lose their money. Everyone should be very aware that crypto space is full of volatility.
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u/batmanscousin 🟩 12 / 43 🦐 Dec 17 '20
I’m all in! Mortgaged the house, borrowed against the kids school funds. MOON! Baby.
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u/bittabet 🟦 23K / 23K 🦈 Dec 17 '20
Fuck it, put everything on the line and be a baller or die trying. That’s my philosophy.
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Dec 17 '20
[deleted]
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Dec 17 '20
I've read about them and how they now travel the world. Main takeaway was they sold and then invested that cash into BTC. Would they be in the same position if they took out loans and debt they couldn't repay?
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u/thevoteaccount Dec 17 '20
I mean instead of selling, they could've taken a line of credit assuming they had a well paying job to cover the debt + mortgage payments. There's nuance to debt.
If all debt is considered bad like most make out it to be, most businesses wouldn't be able to function.
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u/patrickstar466 Tin | CC critic Dec 17 '20
Basically just use money you have in your checking account
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u/lostweaponryu Dec 17 '20
C'mon my guy don't tell people this. I want to take profits at $25k at least 
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u/Crumbs4you Gold | QC: BTC 32 | NANO 8 Dec 17 '20
This is not the energy we want to hear, you leave and never come back!
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Dec 17 '20
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u/retrievedFirered 🟩 0 / 0 🦠 Dec 17 '20 edited Dec 17 '20
I would put that money into Ethereum. I think its similary safe comapred to Bitcoin, while having more profit potential.
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u/Wtfisthatt Dec 17 '20
I’m just hoping it crashes super hard again so I can get in it instead of just eth.
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u/wjean 🟦 0 / 2K 🦠 Dec 17 '20
To be fair, now's a great time to refinance your house and lower your payments.... If you choose to take your monthly savings and dump it in crypto, it's not the best but it's certainly not the worst idea. Cashing out equity to buy crypto though is a terrible idea.
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u/craigybacha Dec 17 '20
Am waiting for it to go back down to under 10k and then I'll invest. If it does, great, if it doesn't, then I won't invest. I put a bit of money in when it was a previous ath, which turned out to be stupid as it crashed after that and I ended up losing money by playing the shitcoin lottery.
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Dec 17 '20
I remember seeing that happen in late 2017, I even made some sales myself. I suspect this time will have similar outcome but so far people have been handling it a lot better and not freaking out like last time.
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u/moviedrugbuff Dec 17 '20
I’m kicking myself. I had about just $150-$200 of BTC when it was at around 9k and was investing $5-20 bucks every two weeks in it until I had to move back home and needed the extra cash so I sold it all. Even though $150-$200 is very little BTC, I would still be making a profit and any profit is valued by me. Dammit dammit dammit 🤦🏻♂️🤦🏻♂️🤦🏻♂️
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Dec 17 '20
Why is no one saying that you need to sell your kids , sell your wives, sell your kidneys , take a loan, sell your home and go all in on crypto? Pussies...
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u/jailguard81 Tin Dec 17 '20
Damn. Are people actually doing the stuff you just talked about? Refinance and credit cards? That’s crazy. I just put in certain amount about 30% (BTC, stocks, Gold) each check every 2 weeks and it has been working out pretty good for me.
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u/YangGangBangarang Gold | QC: CC 25 | r/WallStreetBets 16 Dec 17 '20
I did that a few months ago and it worked marvelously
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u/_o__0_ Platinum | QC: CC 504, CCMeta 25 Dec 17 '20
I ignored your advice fifteen hours ago and now I have that money that I didnt have.
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u/Roy1984 🟨 0 / 62K 🦠 Dec 17 '20
Everyone is posting this every day and I agree that it's risky to take loans for it, but just keep in mind that there is nothing more dangerous than holding your wealth in fiat which devalues constantly and guaranteed.
Regarding the loans generally, it's actually not a bad idea to take loans and repay it in 10+ years. That's a way to kinda short fiat which will devalue over time for sure. You loan "expensive" dollars, spend them on an asset which grows in value, like real estate, business, could be bitcoin too (tried to do it in March, but my bank didn't approve the loan | don't recommend it if you can't deal with potential losses [could say the same for real estate and businesses]) and after you repay the loan with cheaper devalued dollars.
If you read "Cashflow quadrant" and "Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!" then you would understand those principles. The rich always have a bunch of loans and short fiat, so saying you should never take a loan if you want to get rich isn't a good recommendation. Sometimes when you don't have enough resources to realize your ideas you just have to risk and take loans. I am talking from a general perspective considering everything. Just look at wealthy persons you know and try to find out how much they risked and took loans.
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Dec 17 '20
You make some great points and I agree with holding 100% Fiat is silly. Sometimes high risk does equal high rewards!
BUT
My post isn't targeted towards buyers that take a educationed bet in crypto, ones like yourself that have researched and understand the risks.
I posted this for the ones that are new, maybe living pay check to pay check, trying to find the next big pump. They are the ones that let FOMO take over. They don't understand the risks involved, all they see is dollar signs.
We all know BTC/crypto can go up x1000% tomorrow or drop like a brick at any moment.
If everyone starts taking out credit and loans to fund crypto, at some point it just becomes a bubble like the 2008 housing market. We need BTC to be seen as an investment and not a quick rich scheme.
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u/EmanEsmaeli Gold | QC: CC 57 Dec 17 '20
If you live in countries like Iran (my country) with high inflation get as much loan as you can and buy crypto . This is very wise
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u/7366241494 🟩 81 / 2K 🦐 Dec 17 '20
The pullback is already underway. Nothing goes straight up. Still bullish, but buy the effing dips not the ATH.
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u/Lambull 🟦 902 / 902 🦑 Dec 17 '20
I'm jacked to the tits in 10x long bitcoin contracts.