Gotta $4000 financial aid check from school and want to dump it all in btc. Someone push me over the edge.

  1. If you're posting here, you're not looking for the best advice; you're looking for validation on a decision you're pretty much already going to make.

  2. So you got need-based financial aid for education expenses, but you have enough money leftover after covering your education expenses that you can enrich yourself with $4000 in Bitcoin paid for by the Federal Government? Better check the terms of that Pell Grant.

  3. is this for school supplies, books, or to pay back a student loan?... make sure you aren't going to accumulate debt by doing so. Are you being strategic?

  4. I mean to let it sit. This money is from last semester that I already completed with a 3.9 gpa. It’s factored in as living/transportation expense which I don’t really need right now

  5. If you need to be pushed over the edge, then it’s not the best time to buy for you. Start learning about BTC and start buying a 10-20$ per purchase. Bitcoin is going to be volatile for some time and you need to be prepared for that. Start with following:

  6. No, no, no! We are in the middle of a bear market. Worse, we're currently in a relief rally during a bear market. Wait for prices to go back below 30k at least. Or better yet, DCA. Look up dollar cost averaging if you dont know what it means and do it. Then NEVER SELL unless you are making a profit. The longer you hold the bigger the profits, but be aware that you might have to sit through a 80% drop or worse without selling. Whenever a drop like that happens, it could be years, but bitcoin will come back harder and stronger eventually.

  7. Never invest money that you can't afford to lose. Not what you want to hear, I know, but you'll hate yourself if you get behind and can't finish school or have to take on a job to cover any losses. Save what money you can and buy the dip in September.

  8. I believe you owe that money back. If that is the case you are using loan money to put into Bitcoin. Not a good idea.

  9. Golden rule, NEVER invest more than you're willing to lose and money you do not need in the short term.

  10. Dollar cost, don't dump it. $4k I'd do like $200 a week or something. This bear market may last 2 years, it may last 2 months. Either way you'll have a decent chunk by the time it matters

  11. Yeah, if you expect the price to go up, lump sum is way better than DCA. If you expect the price to go down, DCA is better but then why the hell are you buying something if you expect the price to go down.

  12. Disagree. Someone smarter than me explained it to me once. In short, By DCA'ing over several months you'll dampen the short-term volatility, which significantly reduces the chances of losing a bunch to a short-term drop-off right after investing, which in turn maximizes the expected growth rate of your portfolio.

  13. This is the dumbest shit I’ve ever seen. Asking any strangers for financial advice is dumb enough as it is, but asking strangers to spend your financial aid is another level.

  14. If you don't do it now. You'll regret not doing it later. 100% true words as represented by my experience in missing out.

  15. Dump it in! Similar situation to you but back in 2011, always think back to maxing out my financial aid to buy corn & running bitcoin core with free electricity in my dorm.

  16. A lot of DCA comments so I thought I would spice it up - dump all that shit in BTC today and wait 5-10 years hoping for the best.

  17. Probably less than 1 million people have over $4k in Bitcoin. Think of how the 1 millionth richest person lives.

  18. I’ll probably get downvoted for this but… I’ll note to OP that DCA doesn’t outperform lump sum investing much of the time. Many investors simply don’t have the lump sum to invest leaving them with a bias in favor of DCAing. That said, many people who have a lump sum to invest, and don’t put it into the market all at once sometimes spend it on other things (which would f*ck either strategy, but there is greater temptation to spend it over a longer timeframe). Although the markets may slide further, it’s a better time to invest a chunk now than it has for the vast majority of the time since December 2020. DCA’ing over the last year would have given an investor a much higher average cost than 4k all at once at the current price. I’ll reiterate that we have a good amount of bear market left (a year, maybe more) and 4k - depending on the size of the weekly (monthly?) allocation, it won’t last too long. Maybe a 1/3 lump, 2/3 DCA considering the macro factors?

  19. I just wrote this as an answer to a post about crypto being a zero sum game. I somehow feel it's valid and hope it will push you over the edge:

  20. I do not recommend dumping all in at once. Markets are unstable, and if you might need to liquidate some of that in the short term, I think you’re better off DCAing. Personally, when I was in college, I couldn’t afford to lose 4k, and the money would’ve been useful for food + rent + tuition. But it really depends on your risk tolerance and what you can afford to lose.

  21. I almost took 5000 when I got student aid in 2014 to buy bitcoin when it crashed to 400 or so. My friend talked me out of it

  22. Why not use the money for what it was expenses! Or do you just plan to cry for tax payers to foot the bill and forgive your student loans?

  23. Buy a small amount everyday until the 4K is gone. Especially with what’s happening right now. I don’t have a crystal ball but recession is inevitable at this point and btc will likely go closer to 20k

  24. 1-2k at current price would be my move then I’d dca the rest over the next few months. Only save in dollars what you can afford to lose.

  25. It really depends on your personal situation. If you have zero need for the money, why not. Do what you want. If you're a college kid with 500 dollars in the bank, maybe save it. It's important to have an emergency fund. Imagine you buy this, have zero savings, and your car needs a fix, for example. Just be smart.

  26. You do you but it seems sketchy to accept money you clearly don’t need for education and use it for a different reason.

  27. Before we do, I just wanna make sure your bases are covered, no big bills or tuition due correct? Car in decent shape? Rent paid? If so go nuts

  28. It won’t make you enough money dude. Buy 4000$ worth of hard drugs instead. Flip that 2 or 10 times. Now you can buy some BTC

  29. El savador and African Republic both made bitcoin legal tender and you can fly there using emerates airline as they now accept bitcoin or keep it all in a dying currency.

  30. This is always my advice for anyone considering a large lump sum BTC purchase. Just consider the risks associated with different choices. If you put in X large sum today are you prepared for the possibility that it drops by 50% tomorrow and takes 2+ years to come back up? Alternatively, are you prepared for the possibility that you decide to “wait til it’s cheaper” and then it goes up 50% tomorrow and you’re either left out or you end up Fomo’ing in at the top? These are obviously extreme examples but they are thought experiments to help you test your conviction in the asset and in your confidence in an investment decision. No one knows what the price will do in the short term, but most people in this sub believe BTC is going up in the long term. That’s why we say do your own research, learn as much as you can, then trust your conviction in the long term potential and dollar-cost-average your way into the asset with money you can afford to lose if the unexpected happens

  31. Are you looking for someone to blame if it doesn't work out in fiat price? I get that you aren't serious but seriously?🙄

  32. I wouldn’t go all in on Btc now. The price is wavering and may drop more, we don’t know. Buy SOME btc and watch the valuation and DCA accordingly. Research an alt or two, keep some money safe on the side as a hedge.

  33. So your school gave you charity you didn't need and you want to use it to speculate on asset prices instead of giving it to someone who actually needs it? What about the school? What about the doners who provided the grant? What about the people who can't afford an education?

  34. Everyone says don’t invest more than you willing to lose but here is the simple truth, if you don’t need these funds to graduate then you are way better off imo buying btc with it. I don’t know your spending habits but most students are gonna blow that 4K on drugs,alcohol, partying, stupid tech/gadgets you gonna get bored with. My point is if you don’t need the funds to complete your degree then it’s better to take a risk buying btc than spending it on stupid shit. In grand scheme of things losing 4k will not change your life unless you live in an extremely poor country, while potentially turning that into 20-30k+ long term would get you some nice amount for something useful in the future

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