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.