First Steps
Have you decided that bitcoin may be right for you?
People who devote the time to study and learn about Bitcoin often increase their Bitcoin conviction as their understanding advances. For those interested, the following action plan can help get your Bitcoin journey underway. This action plan follows a simple framework: Stack, Study, Learn, Understand, Grow Conviction.
Action Plan
1. Achieve Positive Cashflow
1. Achieve Positive Cashflow
1. Achieve Positive Cashflow
- Importance: Being cash flow positive ensures you have the capacity to save without incurring debt. It also avoids being forced to sell bitcoin savings to cover expenses.
- Action Steps: Increase your income, reduce expenses, and minimize debt until your cash flow is positive.
- Goal: Establish a solid financial foundation to support a bitcoin savings plan.
2. Initial Bitcoin Purchase
1. Achieve Positive Cashflow
1. Achieve Positive Cashflow
- Importance: Start with a meaningful but manageable amount – enough to ensure you are engaged, but without risking too much capital. If your instinct would be to sell at the first sign of volatility, then your initial Bitcoin purchase size is too large.
- Action Steps: Buy a budget-friendly amount of bitcoin, considering your personal financial situation.
- Goal: Make an initial bitcoin purchase that does not break your budget, while providing you enough incentive to study and learn more.
3. Basic Bitcoin Education
1. Achieve Positive Cashflow
4. Automate Bitcoin Savings
- Importance: Knowledge is power. Bitcoin is a novel technology. Studying and learning about Bitcoin will help you understand make better decisions.
- Action Steps: Dedicate 10 hours to reading articles, books, listening to podcasts, and watching videos about Bitcoin. Included here are some of the basics.
- Goal: Gain a foundational understanding of Bitcoin, its technology, and its potential.
4. Automate Bitcoin Savings
5. Intermediate Bitcoin Education
4. Automate Bitcoin Savings
- Importance: Automating routine savings into bitcoin helps mitigate the emotional impact of volatility. If the value of bitcoin falls in your native currency, then you purchase more units. If the value of bitcoin rises in your native currency, then know you purchased fewer units.
- Action Steps: Set up an automated system to buy small amounts of bitcoin daily, weekly, or monthly.
- Goal: Build a disciplined, consistent approach to accumulating bitcoin savings over time.
5. Intermediate Bitcoin Education
5. Intermediate Bitcoin Education
5. Intermediate Bitcoin Education
- Importance: Deepening your knowledge will help refine your savings strategy and increase your confidence.
- Action Steps: Invest 100 hours in further education through more in-depth articles, books, podcasts, and videos.
- Goal: Develop a stronger, more nuanced understanding of Bitcoin, and its market dynamics.
6. Protect Your Savings
5. Intermediate Bitcoin Education
5. Intermediate Bitcoin Education
- Importance: Leaving all of your Bitcoin in the custody of exchanges or brokers carries certain risks. An upgraded security approach may be warranted.
- Action Steps: Create and implement a suitable security plan to safeguard your Bitcoin, relative to the size of your savings.
- Goal: Develop an appropriate security plan that considers the amount of your Bitcoin savings, technological aptitude, and risk management.
7. Bitcoin Investment Plan
8. Advanced Bitcoin Education
8. Advanced Bitcoin Education
- Importance: A well-thought-out plan will guide your bitcoin savings and investment decisions, while also helping manage risks.
- Action Steps: Create and implement a bitcoin savings and investment allocation plan based on your financial goals and risk tolerance.
- Goal: Establish a structured approach to your bitcoin savings and other investments.
8. Advanced Bitcoin Education
8. Advanced Bitcoin Education
8. Advanced Bitcoin Education
- Importance: Ongoing learning ensures you stay informed about the evolving landscape of Bitcoin.
- Action Steps: Spend an additional 250 hours on advanced learning through books, specialized resources, courses, and discussions with experts. Local Bitcoin meetups are a place to learn from others.
- Goal: Deepen your Bitcoin expertise and conviction, enabling you to make more sophisticated decisions.
9. Refine Investment Plan
8. Advanced Bitcoin Education
10. Opportunistic Bitcoin Buys
- Importance: Regularly updating your bitcoin savings and investment plan ensures it remains aligned with your financial goals and market conditions.
- Action Steps: Review and adjust your bitcoin savings and investment allocation plan based on new knowledge and market changes.
- Goal: Maintain a relevant and effective bitcoin savings and investment allocation strategy.
10. Opportunistic Bitcoin Buys
11. Continuous Bitcoin Learning
10. Opportunistic Bitcoin Buys
- Importance: Strategic purchases during market dips can enhance investment returns.
- Action Steps: Consider using excess fiat currency to buy additional bitcoin when price drops sharply, while remaining within the parameters of your bitcoin savings and investment allocation plan.
- Goal: Take advantage of market opportunities to strengthen your bitcoin holdings.
11. Continuous Bitcoin Learning
11. Continuous Bitcoin Learning
11. Continuous Bitcoin Learning
- Importance: The Bitcoin market is dynamic. Ongoing education is essential for staying ahead, particularly for people interested in adopting bitcoin as a principal monetary vehicle.
- Action Steps: Commit to continuous learning through current news, advanced courses, advocacy efforts, teaching others, and community engagement.
- Goal: Remain informed and adaptable to Bitcoin's evolution.