Topic: Bitcoin Investment, Beyond "Invest What You Can Afford to Lose" (Read 774 times)

  This is what most people in this field always and often say as investors: we should only invest in what we can afford to lose, and I think this is a useful reminder to anyone entering the crypto business field. .

  As long as we don't forget, as investors, we must also have the habit of being risk-takers so that we can really experience profit in the field of the crypto space, because this is the character that other successful crypto enthusiasts in the field industry have. this.

Despite how bitcoin has proven credibility in doing business with it, I still believe that people should invest what the have, bitcoin is not an investment that you must put your all because, Bitcoin is a good investment but is mainly for people that know much about the technology, the volatility of bitcoin, has made it very open to investors that it is not not stable in price, so with this knowledge one needs to know that investing in this digitalized asset should be done to expect any occurrence, the scenario that should keep you going here is the security and safe identify and the possibility of make good fortunes in it too.

That can be called a risk with very high crypto price fluctuations.
It may be reversible, but in some other crypto it will not be a guarantee because of the rapid fluctuations and how the coin can also be trusted.
This means that Bitcoin can provide good reversible and can be guaranteed, while other altcoins are still not necessarily.
and also with a note that the price reversal will depend on the prevailing trend as when Bitcoin will return to the last ATH certainly takes quite a long time, who is able to survive they will not lose.

Yes, and there will be no rollback on the type of hack on private or Exchange swallows (depending on whether the Exchange implements SAFU or not).

The investment must be done consciously and definitely using money that is not needed as long as the investment goal has not been achieved.

Those losses are an evil that cannot be reversed. That is, if you make an investment and it becomes devalued, like the price of Bitcoin would have decreased a lot, then it is not a loss, but it is there in the same amount, only the price has decreased. If the price moves up, he will automatically return his share to you and also give you a profit. The real loss is, as you mentioned, that a wallet is hacked or a coin in which you invest, and it rug pulls and steals your funds like Tera Luna did. There are many other works that can cause you real loss, i.e., you cannot return them.

So what is meant is that if you suffer a loss due to price fluctuation in Bitcoin, it is reversible; it is not called a loss. And if Bitcoin loses your affordable investment, it gives you the possibility of a return. And if there is an investment in coins other than Bitcoin, hacking, etc., then it is impossible to return them.

So invest as much money as you can afford to lose, i.e., in return.

It's easy to say we should have invested more than we could have afforded to lose when we look to the past, but the truth is that the same can't be said about the future, because nobody can predict it accurately.

Of course I do regret for not selling everything I had ten years ago to invest all my money in Bitcoin, including what I couldn't afford to lose, but I have this kind of sentiment right now because I know what happened next. But if I didn't, how could I make such decision?

We can't risk our stability for something which is out of our control and is prone to be heavily manipulated by third party people, the whales. You can't put your fate in someone else's hands, therefore the rule of investing only what you can afford to lose is still pretty advisable even in our present days.

The concept of loss you mean is more about losses that result from Bitcoin market fluctuations, while losses can come from anywhere.
As you said about hacking, that will result in losses that will never be able to return again.
While it is a loss because the price keeps falling, it will only be a loss when you sell it.

The concept of investing money that can afford to bear losses can vary depending on what issues are at the core of the loss.
You just need to keep your investments safe and under control.

The phrase "invest with what you can afford to loose" is simply a buyable advice specifically to the newbies so they don't hastenly get attracted to invest out of impressions of the exciting pace in the ongoing market with its intolerable and not worth gambling funds to be loosed as a case of chasing profits.
Hence it is safer taking early conciousness about the negative sided nature of the Bitcoin industry based on its volatility before venturing otherwise the act of the unawareness could create bridges of unfitted to withstand a y form of unpleasants which may linger to breakdown if the market goes biased.

Talking about to hodl your Bitcoin investment for a long time investment, that is to be considered a better option but not the only way in for Bitcoin investment.
It is wise to decide if you are going for a long-term or a short-term investment so you would verily have your ways, confidence and manners of tempering your trading funds that is profefered to yield incomes.
The clarity is that short-term basically for investors who are not leaned to other sources of incomes or basically a system of investment which one is protected to offer assistance at financial needs which is potentialed to unimpressive running.
While long-term investment would require you to obtain other sources of investment so you could set a non disturbance giving your investments and the market time to run hoping on the volatility of the digital markets that demands patient for a chance of bull-runs.
And this is potentialed to catch up with the marketing values at when bull-runs.

I still don't really understand the concept of invest when you can afford to lose. Although I know and we are all certainly aware that bitcoin has risks but saying invest in bitcoin when you can afford to lose in my opinion this is too harsh because after all we will not lose what we invest in bitcoin unless you sell the bitcoin you have or maybe there are some things like you are exposed to hacking (robbery) or the worst possibility that even now will still not be possible when bitcoin reaches a price of $0 can only be said to be lost.
But when bitcoin crashes and we are only affected in terms of value in fiat it is not a loss because the bitcoin we have is still the same in terms of amount only the value has shrunk so it is not a loss in my opinion and I still don't like the word investment when it is able to lose because in the end the concept of loss in question is different.

It's good when we know the amount of risks we want to take for a particular investment which is what will help us to define the amount of profits we have to earn from such business or investment. It is good when we tell people that are eager to buy and hold Bitcoin on the level of risks they should be ready to take because the market is very volatile. If we don't disclose that to them, they might end up making severe loses when they make mistakes of selling when they are nit supposed to sell. A lot of people had made this mistakes and they have end up losing severely when they should have decided to hold and sell when they finally makes profits.

I hope everyone here knows that this "Invest what you can afford to lose" adage has a limit in terms of amount, now what I mean by that is that those words will not make any sense when the amount goes around million or even a hundred thousand depends on how valuable your currency is but my point is that when you start to invest it's gonna be easy but when you continue, the amount will go up and you really can't say to yourself that you won't mind losing that money anymore.

There is no investment without risk, the higher the profit, the higher the risk. Although bitcoin has been developing for more than 15 years and has had great achievements, what evidence do you have to prove that in the future bitcoin will definitely still exist and grow even stronger? The past does not represent the future, and the future is unpredictable. That's why we advise each other to only invest what we can afford.
Even when Satoshi created bitcoin, he wasn't sure about everything. He once said "it may have a very large volume or it will be nothing", nothing is certain, mate.

Its a great piece of advice to only spend what you can afford to lose. This is especially true when markets are volatile. Why? As you said, the future of Bitcoin is full of "ifs" and "maybes," even though it looks bright. Undoubtedly, it will reach $100,000, but when?

Investing too much, especially when you borrow money to do so, is like taking a chance with your money. Price could go through the roof, but it could also go through the floor. If it does happen and you have to sell at a loss because of things you cant control, like health problems, economic downturns, etc., thats two bad things in one.

As a result, your stance serves as both advice and a defense against potential future blame. People may not pay attention to your advice, but they will remember them if things go badly. As the saying goes, "balance" means weighing promise against usefulness. That balance is very important when dealing in crypto, which is a very risky business.

I think I agree with the Op in that one should take the worry out of investing in Bitcoin. As far as I have experienced and discussed with several people, it is true that they often think that the money you invest will be ready to lose, perhaps they stick to fluctuating prices which makes them say so. But day after day and month after month Bitcoin has been mass adopted and that's where they regret what they have done before, namely being afraid to invest in Bitcoin.

Bitcoin has a limited supply and the development of Bitcoin has been one of the best in this modern era so those who are afraid to invest in Bitcoin are one of the groups left behind by current progress. Many companies have invested in Bitcoin so the notion that they can afford to lose should be thrown away immediately and restart investing better, either doing it with DCA or buying at every dip to hold it in the long term.

Well, however, you describe it, I would still advise people I know to invest what they can afford to lose. However, it is the lowest level to minimize losses that could occur in the future.
OK, we agree with the statement that Bitcoin has great potential in the future. however, what we have is only “belief”. When people are asked whether Bitcoin will reach $100k, people will answer "yes". and, when that will happen, the answer is "don't know". When people invest more than they can invest, borrow, or anything else to invest in Bitcoin, it's not a good thing. maybe in the future, the price will rise, but we need to consider living needs and other unexpected costs. Many people are forced to sell the assets they own when they need money, whether because of economic, health, or other factors. Well, what if at that time prices were very low, then big losses would occur, and the people who pushed to invest more would be blamed. If you had said to invest in what you can afford to lose, and they don't listen to that, then in the future, when things get worse, you can't be blamed for that.

That phrase doesn't refer to bitcoin only, it's for all types of investment because even the classic stock market can dump, and you you invest money that for whatever reason you are going to need then you're in big troubles because what are you going to do? Best case scenario you sell at loss and still get some money back, worst case you lose everything. Investing is not a game.

I think $5-$10 of investment in Bitcoin is too small and not worthy if you're going to go for long term investment, unless you're planning to add some capital for bigger profits in the long run. My point is, to make it more worthy while waiting, max your capital but don't forget to spare some extra money for yourself, like to pay bills, buy foods, and for your wants and other needs.

"What you can afford to lose" doesn't mean that you have to be more miserly when it comes to what you're planning to invest, for me it means that whatever amount of money you think is worthy to invest is worthy of your waiting time while waiting for the result, either it is bad or good.

"Invest what you can afford to lose" - I think this phrase should be in general status when investing in crypto. That means with everything you should invest only when you learn it, not just buying/holding/trading or surfing... risks can still come from hackers or basic mistakes. Maybe bitcoin doesn't inherently bring any risk, but it comes from other factors. Crypto brings risks, but bitcoin does not necessarily "bring" risks

But I think this rule is a key principle in general when it comes to investment and not only applicable to cryptocurrency or bitcoin in particular. I still hold the believe that you should never invest money that you can't afford to lose because there's always the possibility that you could lose it all. Although, there's the potential for big gains if you invest wisely and just because Bitcoin has proven itself over time doesn't mean that it's risk free. As the saying goes, past performance is no guarantee of future results. So even though Bitcoin has done well in the past there's no guarantee that it will continue to do well in the future (although, this is not likely).

Investing recklessly without considering the risks is a recipe for disaster and taking a calculated approach is the way to go. You just have to prepared yourself for the unexpected always.

OP miss to distinguish between the phrase 'Invest what you can afford to lose' with 'Invest what you are willing to lose' both are very different things, no one invested their money and willingly losing it. 'Invest what you can afford to lose' doesn't mean investing carelessly and willingly losing money, 'Invest what you can afford to lose' means that if you lose the money of your investment you are still financially able to continue your life and recovering from the money lost, and then collecting money again to reinvest.

Invest what you cannot afford to lose, in a simple example would be lending money from a bank to Bitcoin with interest and collateral, that when we make a bad investment it make us bankrupt.

The phrase 'invest what you can afford to lose' is usually tied to altcoin investment, especially shitcoins, not necessarily BTC. Every one knows that Bitcoin investment is never a lose, if you can hold. But the same can not be said about some altcoins.

Moreso, you can't tell people to leave shitcoins, though it is very risky, but there are some who have made a fortune and from it. For example, Shib, which is a meme token made many millionaires.