Topic: Bitcoin Investment, Beyond "Invest What You Can Afford to Lose" - page 4. (Read 775 times)

This is simply a warning for newbies who don't understand how bitcoin works, and also for people with low income so that they don't end up regretting their actions especially the short term investors that thinks that bitcoin is a get rich quick scheme. I see that phrase as the best advice for investors so that they don't over believe in bitcoin that it can change their lives or bring massive income to them and for this reason, they might end up investing aggressively and having all their funds in bitcoin, or they will borrow money to invest and when the market goes the opposite side of their expectations they will panic and sell and run at loss. Short term investment and using money that you can't afford to lose will not make you enjoy the profit from bitcoin investment but rather will bring loss to you and this might discourage you from investing again and some newbies will say that bitcoin is a scam because they never invested in money that they can afford to lose. It is the best advise, so that when you don't follow the rules and run at loss, you have yourself to blame. As time passes by when your belief on bitcoin is strong, then you can invest with the amount that you know wouldn't affect your income. You should also know that everyone has his own amount that he can afford to loss. The amount that I can afford to loss might be your monthly income, invest in a long term investment and only use the amount that you wouldn't affect your income and other responsibilities so that you don't end in selling your bitcoin when it is not of your will. This is because you will make more profit when you hodli and have target price when to sell

What I meant by the focus should shift was simply that when your main objective are to hodl for a long term, you shouldn't be the type that is scared of loosing their investment because over time, your investment will continue to accumulate.thuogh you might encounter some loss due to some dips and the market volatility, but you shouldn't focus more on little losses.

When you invest in Bitcoin, make sure you're using money that isn't crucial to your life, and be careful not to lose it. Nobody wants to lose their investment, so it's important to be cautious.

Money (material) is not the main reason when we talk about investing, turning things around and knowledge issues are often ignored, but it is an easy source for whether investments can help us complete the goal. The opinions stated are not wrong at all, but it is clear that simply putting money into places we do not understand is always a mistake until we realize that cultivating knowledge is even more important. I bet that many participants only think about the profit opportunity from Bitcoin (crypto) and they don't care much until they lose more money during the investment process, because this is the story. Money reflects whether our lives depend on it. With good managers, of course they will avoid risks in the investment process and on the contrary, just spending money in their own pockets is no different from pure gambling.

Invest in what you can afford to lose is just a way of telling you to invest an amount you are sure you don't need anytime soon, it's not like you are investing an amount to be forgotten but putting an amount you know you will not need anytime to soon is the best way to go. Oftentimes without numbers, we have heard, read and reported cases of people selling their belongings to buy Bitcoin, taking loans to finance their investment into Bitcoin and the times they do this is when there is euphoria in the market, they get excited by the gree candles and pour everything and expect the result of someone that has been holding for 5 years, and when bitcoin makes a correction, they make an unrealized loss. Now, with this tragedy how do you think they are going to get back their money to repay the loans they took to invest in Bitcoin? I hope you have seen a bigger picture of why they say to "invest in only the amount you can afford to lose"



You need to know something but first let me ask you. If you are blessed with a million dollars today, can you risk it all and invest everything in Bitcoin? I doubt but if it's another person, he will do it without shaking; that's the amount the person can afford to lose but you can't do that because that amount is too precious for you to invest everything in Bitcoin when you have other primary problems to solve, amount to invest is subjective to individual pockets.

Whether you pick dollar cost average or buy at a spot, you still have to think before doing that, you need to decide if the amount you are using to buy is riskable from your financial status so that tomorrow, you don't wake up and be having doubts about your bold decision to buy Bitcoin.

Before deciding to invest in Bitcoin, it is very important to do research to understand the risks you will face so that you will be more careful. Bitcoin price movements are quite significant, making it possible for anything to happen significantly, be it profit or loss.
So because of this, it is recommended to invest using money that is not used to meet needs or money that is ready to be lost without affecting anything, this is also one of the things that will minimize risk, for example reducing panic when prices drop drastically.
Some other things that are very important are investing with ability without having to force it, such as going into debt or putting all your savings into it, which is very risky.

It is always advised for every investor that you invest as much money as you can afford to lose. This word is very small but its importance is great. By this word a new investor is made aware of investment caution. This is a very important point for every investor. One should always invest with extra money because if the money is ever lost due to investment and if the loss is not recovered in time then the impact of the loss should not be on the investor. Investing on loan or investing with all your savings should never be done.

The focus shifts like what do you mean and I can't understand the purpose of this one statement? Because the holding strategy that is needed is just calm and not panicking when market conditions experience a sharp decline.

If you have the ability to invest then knowledge will definitely make us ready to accept the risk of loss, but the problem is not the level of readiness but the condition of your understanding in terms of minimizing the risk of loss. Bitcoin can be an alternative solution in the long term regarding maintaining currency value and even though it is quite volatile there are ways to minimize it. Bitcoin also provides an opportunity for anyone to get involved even if using small capital, in traditional investment perhaps opportunity and capital are two things that are quite needed.

Well.. i think this is a kind of 'comfort doctrine' for new users looking to get into Bitcoin. We all here surely don't know the individual risk profiles, and using  'invest what you can afford to lose' is a way to manage the expectations of Bitcoin buyers, so they don't expect too much... but in reality, Bitcoin moves more aggressively up and down. If the price goes down, BTC buyers shouldn't worry because the potential loss is small, while if it goes up, it will definitely exceed their expectations.

People who've been buying Bitcoin for a while already understand and pay more attention to it. Even those who are familiar with Bitcoin will invest more than initially thought, because they know there's no issue with that.

Meanwhile, 'invest what you can afford to lose' is just for those who don't yet fully grasp it or newbie who want to start the journey.

I know that age is not the only reason why bitcoin is not yet a safe asset, and if we evaluate it comprehensively, bitcoin still has many shortcomings to become a safe asset. Such as recognition, popularity...and volatility as you mentioned. Some people will be biased and think that bitcoin is safe, but if based on a common scale to evaluate, bitcoin still cannot be compared to gold or real estate in terms of safety. There is no asset that offers high returns but low risk, that is the rule that applies to everything in this world, bitcoin is no exception.

In every investment, crypto or not, it is your responsibility to do your homework before jumping in.
So even if you can afford to lose such money, it is always advisable to learn about what you are going into.
Because this will give you insights if you are going into a profitable market or not, or has the probability if the market will have positive returns.

In bitcoin investment a good investors does not invest what they can not afford to lose, I know quite well that any investment is a risk and you have to understand the advantages and disadvantages of investment, so therefore I believe that bitcoin investment maybe risk to the investor when the investor have not make a proper research of the investment,  so therefore make a research and understand the output and input of bitcoin investment or any other investment before you can as well venture into the investment, investing what you can not afford to lose in cryptocurrency I think its very bad and you have to know that as investor so that a newbie will not use all it has to invest and if it lose it will be depressed till infinity.

These sentences is very important, not only for beginners but also for other big investors. This is to tell any investor how much risk is involved in the industry. They should know before taking any move to invest in bitcoin so that we will not go and invest a large amount of money that we cannot afford to lose. Anyone who forgets this while investing in crypto is doing so on their own because we are not supposed to invest beyond our limit. It's wrong. We shouldn’t invest and come and suffer at the end of the day, running out financially. That is why we always advise investing the amount you can afford to lose, which is applicable to all investors.


Normally, bitcoin investment and gold investment are not the same thing. My reason is that the bitcoin market is not the same as the gold market, and for the bitcoin market, nobody will tell how the price will go at a specific time. Therefore, this investment is a choice, and your choosing bitcoin over gold is not a wrong decision. You have your own personal reason, while someone who chooses gold investments has their own personal reason as well, so you can see that it's just what you prefer. There's no force in the industry. You can invest now and decide to withdraw it now. Nobody will say you should live there; it's your funds, not anyone else's.

The high volatility that will result in fluctuations in the price of Bitcoin has become a characteristic of bitcoin,
even that can be an advantage of bitcoin with other investment instruments.
With rapid price fluctuations, investment returns will also be faster.

But this depends on who can make good use of it.
As a crypto trader, you can certainly take advantage of every momentum with high volatility.
Those who cannot accept the volatility of Bitcoin are certainly not ready and not suitable to enter Bitcoin.
Bitcoin and crypto with volatile markets are only for those who are able to accept big risks, but can also get unexpected profits.

The last phrase is much more appropriate to say than the one you thought. The consequences of investing are losses and gains – but if you don't have a good risk tolerance then you don't really understand what that means. You should be prepared to lose money from your investment in bitcoin for various reasons - so it wouldn't be wrong if someone suggested you only invest an amount you can afford to lose. This means that you still have to consider that there is a possibility of losing all your money which requires you to consider not investing all your money in bitcoin.

The age could be considered a factor, however, I am not even talking about how long Bitcoin has existed but I am rather talking about its volatile nature. The thing about volatility that people don’t want to accept is that Bitcoin could sway to any direct (I mean; even far below anyone’s expectation). After all there are products that aren’t up to the age of Bitcoin but are doing really well.

Losing the value of Bitcoin is not the only reason why you should only invest what you can afford to lose. There are other things that you need to consider before investing into Bitcoin. You can lose Bitcoin by losing access to your wallet or losing the key and someone else getting better hands on it. Bitcoin is not a physical asset that you can make a proof that you own it unlike other assets that you have ownership which you can prove through some documents.

If you lose something that you can't see and can't claim to be yours without the access, then how can you say that it is a risk-free investment/less risky? Also, past performance does not dictate future outcomes. The market is still uncertain and anything could happen to it at any point of time. So saying that it is stable right now is not a good idea.
Even if it's cold and Bitcoin has gone through many transformations, I will still say only invest what you can afford to lose.

OP, it's just a kinda standard phrase to say when talking about any investment. Obviously you're buying Bitcoin you're not actually going to lose your money, assuming your practice good security procedures, but there are people naive enough who think that when they get into some investment they are bound to make a lot of money right away. This phrase kinda just says hey think about this first and know what you are getting into.

This is right that for long term holder they have low risk in bitcoin investment. But I think this this phrase will be always remains that "invest as much as you can afford to loss." Investment will be always risky and if you called about the bitcoin investment it is also called by long term trading.
Also I think one more thing is that until the target profit is earned from the trading or investment fund, it is at risk. Because there are many barrier can be faced like hacking, phishing etc. Moreover, many times we have to face many emergency situations when we have to convert Bitcoin to other currencies even if it is a loss. So for these types of causes I think that the phrase will be always remain on investment sectors.

Its not really that bad to be that optimistic but we shouldn't really be that conclusive when it comes to things on which we know that there are really things in life on which it is really that hard to predict out that it would really be remaining into future years. We should really be that making ourselves aware that there's no such thing about permanent of this world. There's always that chance that the old ones would really be replaced by
new ones and this do talks about Bitcoin cant really be able to sure to have that peak spot until the end of time. We can really see and we cant really deny about its dominance and demand in the market
and most of us do really hope for it to retain.

It is really just that we shouldn't really that going all in when it comes to investment even if we do speak about Bitcoin investment. We do mind off about the risk involved from time to time.
This is why those line of words or suggestion is really that always that relevant or keeps been repeated to be told on which investing on what you can afford to lose as always.
There would really be no assurance that it would give out that positive impact or result.

In this part of doing things better, I think that it cannot be seen as what can be lost, I see the Bitcoin investment as the best way to do things to improve any type of life, I never see this as losing On the contrary, I see it as the best option to win, those who see this as an option to allow themselves to lose and their way of seeing things but I don't agree, anything to be able to benefit in the future is like buying bitcoin There is no other way, bitcoin and buying bitcoin is the best investment you can make, for me it is superior to investing in gold, because here they give more immediate results.