I want to know more about general knowledge and basic knowledge in investing. Many people are mentioning that it is necessary to have general knowledge and basic knowledge about Bitcoin at the beginning of investing.
What I know is that common knowledge is that you should never suddenly stand in front of a moving car. Another example is that you can go to the market and buy things by setting a budget, and you can calculate the money and pay for it yourself.
But I really want to know that you need to have basic knowledge about Bitcoin at the beginning of investing. And I also want to know why it is necessary to have basic knowledge at the beginning of investing? You can learn even after starting investing. In this case, I would like to know your opinions and advice.

Having basic knowledge before diving into Bitcoin investing helps avoid common pitfalls. Understanding terms like public key, private key, and wallet basics prevents issues. Also, knowing about exchanges, wallets security, and price volatility can save you from unnecessary losses

Well, I would say that not knowing the basics of Bitcoin before buying is exactly like suddenly standing in front of a moving car.

For instance, people who are new to the game love putting their money in exchanges since they seem to offer the comfort of a bank while they do not know any better.  However, lacking basic understanding of what self-custody means exposes you to huge risks of losing your money.  When an exchange such as FTX collapses, the "learn as you go" type of person understands much later that they never owned any Bitcoin but rather a "promise of Bitcoin."  But by then its too late - your money is already gone.

Keeping Bitcoin on an exchange for a long time is really risky. And the thing you mentioned about the incident like FTX really shows people that Bitcoin on an exchange and Bitcoin in your control are not the same thing. If we don't control the private key of the Bitcoin we are buying, then in reality we don't have full control over Bitcoin, but rather it is relying on a third party. This is something that beginners should definitely learn slowly.

 But your statement is quite harsh, "not knowing the basics before buying is like standing in front of a moving car". Think about it in general, if a new person who has just decided to invest is given the condition of learning self-custody, seed phase, address, transaction fees, wallet types and exchange risks on the first day, then it is more likely that he will get bored and will not be able to start. It is possible to start small in Bitcoin, but it is a different matter to be sure of keeping a large amount of money on the exchange.

Suppose a new person is slowly buying Bitcoin from his extra investable money and still has $500 or less. In such a situation, he can keep it on the exchange until he learns, I personally do not think it is wrong. In this, he can also save on the transaction costs incurred when sending small amounts to his wallet repeatedly. And he can also send it to his own wallet after learning. But I would also say that he should not make this advantage a permanent habit.  I'm not saying that you have to keep up to $500 on the exchange, nor am I saying that you have to take $10 into your wallet immediately after buying it. I'm saying that how much the person has learned, how big the amount has become, and how much they are ready to handle their own security.

Therefore, using the exchange to start with small amounts can be a learning step. But the ultimate goal should be to control ourselves.

Well, it's up to each individual in my opinion, the important thing is that the goal is the same, which is to own bitcoin and prepare for a better future, but I myself don't think that the method I'm using is completely wrong.

I agree with what you've said, that a basic understanding of discretionary income is crucial for getting started, as it's impossible to do it without any knowledge at all. This is the difference: some people are meticulous in preparing for something that requires careful thought before committing, then learn more while doing it. Others simply do it without any basic knowledge and only learn later.

The basic knowledge that beginners need are:
> Knowing not to invest money that cannot afforded to be loose.
> Knowing that bitcoin do not bring fast profit, that it is a long time thing
> Know that bitcoin is volatility

Bitcoin is broad, and everyday their is new thing to learn in bitcoin, so person cannot learn everything about it immediately when they start. Person will have to progressively learn about it as they are ongoingly investing. For example if person started to buy and receive bitcoin, they will naturally start to be knowing how things works from there. And that is better than person who keeps waiting to know everything about bitcoin before starting.

Buying through the DCA techniques isn’t something we should be considering as a new investor, and I think most of the people who are more interested in buying bitcoin through the dip are those who are interested in short term gains and getting profits, because they knows there is always going to be a dip with so they will be speculating about the price of bitcoin in the market, I believe someone who is interested in long term investment would not be interested in buying bitcoin when the price must have dropped, consistent buying and accumulating of bitcoin should be the most priority as a long term investor.

Actually I understand your points clearly but you make it sound more like it's too risky when you said the comment on the bold part of your statement. However this statement feels like you are trying to scare people from buying Bitcoin because they don't have full knowledge about it. As a matter of fact, one can start buying Bitcoin through their
discretionary income and common sense. I guess making a little research will literally help someone understand that storying Bitcoin on an exchange for a very long period of time is not safe but that doesn't mean they can store even as low as $50 BTC on it for a while (few days or a week).

Actually I get it that we are not investing and accumulating or let's say holding Bitcoin for a short period of time, but what I'm trying to say is that if a beginner doesn't know how risky it is to store huge amount of funds (BTC) on an exchange, they can do a little research about it and it won't take them up to a whole day to know this.

Secondly, a self- custodian wallets too are still risky because if you also lose your seed phrase you can not long have access to it anymore, same way an exchange can be hacked or something that can literally make you lose access to your funds (Bitcoin). Based on my point of view, you have also painted all the exchanges black or unsafe for everyone but I don't think so.

The truth of the matter is that a beginner can literally understand an exchange faster than understanding a wallet, so if they start buying Bitcoin and storing it there for a few days while they learn how to make use of a wallet and how to deposit from an exchange to their wallet, it won't stop them from buying at any price. They learn small, and they also witnessed the market at the same time. The reason why I said a beginner can quickly understand an exchange too easily when compared to a wallet is literally because of the fact that they also need technical understanding and how to secure their assets (seed phrase), so it requires a whole lot of works.

What you mentioned above isn't the basic knowledge of bitcoin but the technical aspect of a wallet and it's not needed to get started. What a brand new investor needs to get started is his discretionary income and common sense, to figure out his discretionary income, study his financial situation and how much he will put into bitcoin from his discretionary income. Is it to start slow or not. Common sense will also tell you to learn as you're investing.

You can learn about wallets and how to secure your funds as you are investing with DCA. You can know about bitcoin exchange within one hour. A new investor will become confused and scary in the beginning if he wants to go and start knowing about all those things you mentioned and that might slow them down and that will definitely affect the size of their portfolio in future. It's better to be a low coiner than a no coiner and in bitcoin investment you learn best by pratical.

Keeping your funds with a third-party service in the beginning of your bitcoin investment does not mean that you will lose your coin instantly, it's when you turn the exchange to be your long term storage that your funds are not safe.

You should know that the moment an investor with common sense and is using his common sense will be properly careful to make sure that he doesn't lose his bitcoin the moment his bitcoin investment is increasing in size and that will make him look for a more secured way to store his coins. Since he is DCAing and learning at the same time, he will have the chance to learn about noncustodial wallet and which one will suit him best.

One advantage of piling up your purchased bitcoin in an exchange till it gets to $500 and above before sending it to your self custody wallet is to avoid having too many small small transactions that might end up eating majority of your profit in future if transaction fees becomes extremely high.

That’s true, but learning first is very important before you start investment, it will gist you nothing to have basic knowledge before you invest, but newbies and new investors don’t care about intensive learning anymore, they are after just buying, and since the exchanges have wallets and they used the exchanges to buy instead of p2p, some feel too lazy to learn further in order to send their funds to their personal wallets which is very bad because not your keys, but your Bitcoin.

However, buying some using DCA method and leaving them in the exchange before you learn about non-custodial wallet is good, at least you will be investing and be learning at the same time.

Is there any problem with having multiple transactions? If so then why the DCA method that allows you to buy with the amount you have at that time.
What if the exchange shot down with your funds, what will be you excuse! You want to accumulate before sending to your wallet?

It’s better to send any amount you have out immediately to be safe. Your privacy is important.