One of the most common questions I hear from people is “How much should I buy?”. Once you have been convinced that Bitcoin is something that you want to own, where do you start? I’ll say right off the bat that the answer is truly “it depends”. But, there are some resources out there to help you decide once you are ready to get involved.

Just Start with Something

One of the best ways to see the power of Bitcoin is to use it. I wasn’t really bought in to the whole concept until I had received Bitcoin for the first time and actually experienced how it works. In my case I did some contract work for somebody who only wanted to pay in Bitcoin. There weren’t many takers out there but since I was getting interested in Bitcoin I decided to go for it. Once I had done the work, having my client send me Bitcoin and seeing it show up in my wallet was a really eye opening experience. We decided on the amount he sent it and it just popped up in my wallet. Once it was there I knew it was mine, no waiting 3-5 business days, no charge backs. Everyone should experience that if you want to know what Bitcoin is all about. So, if you’re really just getting started, just go and buy $10 worth, or even $1, then withdraw it to your own wallet. It will be the best sales pitch for Bitcoin you can get.

Ok, I’m Really Bought in, What Should my Goal Be?

When it comes to investing into different asset classes, most people decide based on a percentage of their portfolio. For years the safest strategy has been thought to be the 60/40 portfolio. 60% stocks, and 40% bonds or fixed income. This hasn’t been a great strategy recently with rising interest rates. See here: Is the 60/40 Dead?.

So how can you figure out what your allotment should be? There is a really great tool out there just for this. It’s called The Nakamoto Portfolio.

Nakamoto Portfolio

This tool has a lot of features to it. It can be a little daunting at first but it allows you to compare what your returns might be when owning Bitcoin vs Real Estate, Bonds, etc.

Using this you can come up with a reasonable number (1%, 5%, 10%) depending on how convicted you are in Bitcoin’s potential.

Each of the tools on the site has links to some information on how to use them. The best place to start I think is this video here:

I would encourage you to watch this and look through the other resources there. Again, it’s a really powerful tool with a lot of features so it might take some getting used to. But, this should provide some insight into where you should get started.

Conclusion

There is no right answer to “How much Bitcoin should I buy?” but with the tools out there, like The Nakamoto Portfolio you can get some help. If you’re not ready for allocating some percentage of your portfolio though. I strongly encourage you to just buy a few dollars worth and experience Bitcoin for yourself. I guarantee you will start to see why Bitcoin is so different. And how it will likely change the financial world forever.

If you have any questions or want to discuss anything else Bitcoin related, check out the Bitcoin Buddy Forum or email me at joel@bitcoinbuddy.co.