New to Bitcoin? Here’s how to buy your first significant amount of Bitcoin, according to James Check

00:02 everyone on a recent monthly Q&A with
00:05 James Check who goes by checkmate on
00:07 Twitter. Uh he’s my favorite bit Bitcoin
00:10 analyst. I read his stuff before I read
00:12 anything else. So if uh if an email
00:14 update from him hits, which is typically
00:16 uh probably three times a week, I read
00:18 it literally before I read any other
00:20 Bitcoin content. So I asked him a
00:22 question on there uh in the comments
00:24 after it. Uh, I asked him, okay, I told
00:27 him, “Um, look, I’m I’m onboarding a lot
00:29 of people to Bitcoin regularly, and if
00:32 people are buying their first
00:33 significant amount of Bitcoin, do you
00:35 recommend one, putting it all of their
00:37 money in upfront, or two, putting half
00:40 of what they plan to put in up front and
00:42 the rest over some period of time, or
00:44 three, what’s called dollar cost
00:46 averaging or recurring buys, which is
00:48 put the entire amount um over some, you
00:52 know, weekly period?” He said if
00:54 somebody is completely new to markets
00:55 and just doesn’t understand markets at
00:57 all, he recommends they divide it into
00:59 eight pieces and do it uh 1/8 over the
01:03 course of eight weeks. And the reason
01:04 for that, he did not give the reason. I
01:06 just know the reason. The reason for
01:07 that is if people don’t understand
01:09 markets and they don’t understand how
01:10 prices move, they freak out when they
01:12 put in a significant amount up front
01:14 because then the price goes up and down
01:16 and they freak out when it goes down
01:17 because inevitably prices go up and
01:19 down. They just go up and down on their
01:21 way up. Um, so if you put if you divide
01:24 it into eight pieces and you do 1/8 a
01:26 week, then obviously after your very
01:28 first purchase, you only have 1/8 of
01:30 your money in. And that way if the price
01:32 goes down, you’re not freaking out
01:34 because most of your money still has to
01:36 be put in. Now, he said if somebody is
01:38 familiar with how markets work, they’re
01:40 they’re accustomed to the fact that any
01:42 financial instrument you own goes up and
01:44 down in value, then he would recommend
01:46 they put half of what the amount they’re
01:48 planning to put in uh up front and put
01:51 the remaining half. So, the remaining
01:53 50% divide that into eight pieces and
01:56 put that in once a week uh over the
01:58 course of eight weeks. Um, in all
02:01 situations, I think what he’s going for
02:02 here is getting your money in the market
02:05 as fast as possible without you having
02:07 the regrets of buying at a high price.
02:10 And since nobody knows what a high price
02:12 or a low price is, a lot of people just
02:14 can’t handle the psychological hit of
02:16 putting money into Bitcoin and then
02:18 seeing the price spend any significant
02:20 amount of time below the price they paid
02:22 for it. Now, my recommendation when I,
02:25 you know, people ask me this, I’m like,
02:27 just look, take however much you’re
02:28 going to buy Bitcoin and just buy it.
02:30 Like, just buy it. And the reason is
02:32 it’s very hard to figure out if you
02:34 don’t just buy it, how long of a period
02:37 to do what’s called dollar cost
02:39 averaging, which is a recurring buy over
02:41 some period of time. James Czech says
02:44 eight weeks is the right number right
02:46 now at this point in the cycle of the
02:48 ups and downs of Bitcoin. But again, I’m
02:50 not a technical analyst and I can’t uh I
02:52 don’t have the ability to check with him
02:54 every five minutes and say, “What about
02:55 now? What about now? What about now?
02:57 What about now?” And my guess is over
02:59 time it would be 10 weeks, it would be 8
03:01 weeks, it would be six weeks, it would
03:02 be 12 weeks. Anyway, so my my my
03:06 recommendation stays the same, which is
03:08 if you got money, you’re going to put in
03:09 Bitcoin, just stick it in Bitcoin. But
03:11 if you want the number one Bitcoin
03:13 analyst in the entire world, if you want
03:15 his opinion and if you want that opinion
03:18 calibrated to exactly where we are right
03:21 now as of Monday, June 30th, the exact
03:24 time we are right now at a price of
03:26 1047,400
03:28 1074.
03:30 Uh his recommendation right now is if
03:33 you don’t understand markets and you’re
03:34 not accustomed to things going up and
03:36 down, divide it in eight pieces. put it
03:38 in, you know, 1/8 uh per week across
03:41 eight weeks. And if you do that on
03:42 River, you get zero fees for the seven
03:44 out of the eight. So if you do recurring
03:46 buys on River, when you set it up, you
03:48 have to pay a fee for your first buy,
03:50 but they have no fees on recur recurring
03:53 buys after the first week. So if you set
03:55 up a weekly buy, you pay fees on the
03:57 first 1/8 of the purchase, uh but not on
03:60 the remainder of it if you do it that
04:01 way on River. Uh but again, James Czech
04:03 is saying if you do understand markets
04:05 and you’re not going to, you know, freak
04:06 out and have lots of heartburn, if the
04:09 price trades down after you buy, you
04:11 know, half of your amount up front, then
04:13 he says it’s better buy half of the
04:15 amount you have and spread the remaining
04:17 half uh over eight weeks. And again, you
04:20 could do the same thing on River, which
04:21 is recurring buys over the course of
04:23 eight weeks. And you only pay,
04:29 excuse me, you only pay um fees on the
04:32 first of those uh recurring buys because
04:35 after the first week, it’s no fees on
04:37 recurring buys. Um so anyway, that’s
04:40 James Czech’s recommendation. Wanted to
04:42 give you the heads up since he answered
04:44 my question and that is his
04:45 recommendation. My recommendation stays
04:47 the same, which is if you’re going to
04:48 buy Bitcoin, just buy Bitcoin because to
04:50 me, it’s just too hard to, you know,
04:53 have a little bit over eight weeks.
04:55 Plus, I don’t want money that could be
04:57 in Bitcoin sitting there not in Bitcoin
04:60 for eight weeks. Like, I mean, if you
05:02 spread it, I guess technically if you
05:04 spread it in eight, you know, weekly
05:05 increments, that’s technically done over
05:07 seven weeks. Uh, because obviously
05:09 there’s a a buy on either side of seven
05:12 weeks for a total of eight buys spread
05:13 spread across seven weeks. Um,
05:16 regardless, I don’t want any money not
05:18 in Bitcoin that could be in Bitcoin.
05:20 Even if it’s only the seven weeks that,
05:23 you know, the seven weeks in between
05:25 eight total buys, I don’t even want
05:27 anything not in Bitcoin even for seven
05:30 weeks. But wanted to pass that along
05:32 because James Czech is the number one
05:34 Bitcoin analyst in the world. He tends
05:36 to be right on stuff and I really like
05:38 him and he’s very down to earth and he’s
05:39 very, you know, he shoots straight. Um,
05:42 I subscribe, which is $29 a month to his
05:46 newsletter, which is, you know, probably
05:48 three updates a week or something like
05:50 that. It’s just a it’s a great way of
05:52 feeling like you’re not flying blind.
05:54 Everything that happens in Bitcoin, you
05:56 get a really solid commentary on, hey,
05:58 here’s what just happened, here’s why it
05:60 happened, and here’s what to expect, and
06:02 here’s what could happen based on
06:03 different variables. I just really like
06:05 his stuff. So, anyway, to summarize,
06:07 he’s saying, you know, if you’re new to
06:09 Bitcoin, you don’t understand markets.
06:11 um you know put you know divide whatever
06:14 you’re going to invest right now into
06:16 eight increments and put it in across
06:17 eight weeks and if you understand
06:20 markets put half your money up front and
06:22 the other half spread across eight weeks
06:24 and I’m telling you the easiest thing
06:25 which is what I always do is if I’m
06:27 going to buy Bitcoin and I’ve decided
06:28 I’m going to and I have the capital to
06:31 do it I just buy it. It’s that simple. I
06:34 just buy it and that’s worked for me for
06:37 many years.