Topic: Bitcoin Investment, Beyond "Invest What You Can Afford to Lose" - page 6. (Read 774 times)

Not only with bitcoin and with any investment, once it can bring profit, it can also create risks for us. So I still maintain my opinion, let's only invest what we can lose.
You're right, just because bitcoin has done well for many years doesn't mean it's risk-free or absolutely safe. Even gold and real estate are not absolutely safe, so with an asset like bitcoin that is only 15 years old, nothing is certain. Don't be too subjective with bitcoin because the future is unpredictable.

Invest what you can afford to lose not only for investing in Bitcoin but also for other things. Bitcoin has high volatility. Bitcoin prices can change at any time and if people are not prepared for that, they can panic. That's where they must understand the meaning of investing what you can afford.

If they can afford to invest $25 or even $100 for a single purchase, that's an amount they can afford. We are not buying or investing more than we can afford. Our life is not just about investing in Bitcoin. There are other things that we have to fulfill. So we must keep trying to fulfill it.

And if you already have Bitcoin, HODL is what you should do and don't panic if the price drops. The price reduction is only temporary and later, the price will increase. So be patient in holding Bitcoin until the price rises again.

invest what you wont need in the short term, play the long game

The principle of investment is applied for all types of investment, not only applied for Bitcoin investment or cryptocurrency investment.

If you can not afford to lose your money because your investment goes to a wrong way, you should simply keep your cash at home. Keep it at home, don't keep it at bank accounts because when banks have bankruptcies, you can lose your money in bank accounts.

With Bitcoin investment, after you buy it, you must do another vital step, move your bitcoin (withdraw) it from your exchange account to your own wallet, non custodial, open source to keep it safe by yourself. You have private key and you can control, secure your bitcoin.

How to back up a seed phrase

Regardless of what one is investing, it is a common knowledge to not use the money that is allocated to other spending.  No matter what kind of investment one has, it has its risk and the possibility of losing the capital is still there.

Bitcoin market price is not set in stone that it will eternally surge, the future of Bitcoin is still uncertain even though it is quite popular that it is on the uptrend when we zoom out its price history.  Within that history, there are lots of recorded losses from Bitcoin traders  and investments due to the fact that the price of Bitcoin swings and there are instances that an investors are forced to sell because of unexpected events in their life.

There can be two meanings of "can afford to lose". One is a relatively small sum that can be lost without any notice. Another one is a larger portion of your wealth that can still be lost without completely ruining your life. The second still applies to Bitcoin and any other investment  Do not put your house as a collateral for investment, do not invest your child's education fund, do not invest your safety net, and so on. This is all especially true for Bitcoin precisely because you have to hodl it and can't afford to take your investment out early during an emergency, because that could force you to take a loss.

It is applicable to everything wherein we apply risks, just like you have said in gambling and trading and the same goes with investing in Bitcoin.

As long as you get to hold that you're investing what you have or what you can afford to lose, they're all the same logic and understanding. There is no dynamics in investing in holding Bitcoin.

You buy and you hold, whether that's your life savings or spare money as long as you can afford to do that, no one will stop you. But of course, we always tell that invest only what you can or what you have.

Yeah, one of the old members of the forum said that bitcoin investment doesn't really have any serious static rules for investment, and that's true. Most investors usually have some strategy or rule that they think is best for them to invest in bitcoin, but the most commonly used formula some people use in accumulating bitcoin is DCA. For some common non-static rules, like; buy the dip and hold, hold until you make a profit; if you can't hold, you won't be rich; not your key, not your coin; and the last, "invest what you can afford to lose." In one of my comments just a few days ago, I said that that last common rule should have been modified to "Invest what you are willing to hold for the long term, until you make a profit."

Bitcoin has lived for a decade now, and I don't really think that people have actually invested in it and experienced a total loss like they do with altcoins. Whichever loss that any investor might have experienced with bitcoin is either because they bought at a high price and sold very low, or maybe it is a trader who is leveraging or trading for a short-term profit.

Normally, those that invested in bitcoin and held it for a long time made a profit from it, while those that did not hold it for a long time did not make a profit because they could not hold it for a long time. In such a situation, we can't say bitcoin is actually responsible for their loss, but they themselves were responsible for the loss they encountered. So, that was the reason I said that the rule should be, "Invest what you are willing to hold until the market has earned you the profit you desire."

Even after reading this post, all I can advise everyone is to still invest what they can afford to lose!. Do not think that just because Bitcoin has done well over the years we should neglect risk management. I think of investment in a way that once I've put my money in there, I have lost it (just to keep myself from being too anxious and always checking). I have lost quite some amount of money in crypto, and for the times that it happened, I never felt shocked cause I always acknowledged that I could lose it all. So, investment as a whole is a risk and one should be risk-conscious when being a part of any investment (be it Bitcoin or not.)

In fact, it is an expression that we must be prepared for all risks. I think no one wants to lose their money, especially those who invest large amounts of bitcoin. That expression is just an illustration of risk, that bitcoin has a high risk and in my opinion if we are not cheated or our bitcoins are stolen then the value of our investment will never run out, at most it will only decrease due to fluctuations in the price of bitcoin

One investment that can make our money run out is if we invest in bitcoin futures, this trading model is like forex and has a very high risk, our money can run out in a day. However, if we buy bitcoin and store it in our own wallet, our money will not run out because bitcoin never loses value and price.

The phrase "invest what you can afford to lose" has long been the go to advice when it comes to Bitcoin investments. In the past, it seemed to be a norm, a safety net, but it's time to reconsider its relevance. Over the years, Bitcoin investment has undergone a significant transformation. What was once a realm fraught with doubts, fears of capital loss, and scam risks has evolved into a more stable and less volatile investment landscape.

While risks and scams still exist, Bitcoin itself has proven its worth, emerging as the premier cryptocurrency, demonstrating its dominance over others. The short-term fluctuations are there, but historical data consistently indicates growth over time.So, why should we continue to echo the sentiment of "invest what you can afford to lose" when referring to Bitcoin? I believe this phrase is more suited to gambling or trading, which we all know come with inherent risks.

For those looking to HODL Bitcoin for the long term, with no intentions of actively trading, the focus should shift. Instead of investing what you can afford to lose, consider investing what you have to invest. Unlike other traditional investments like real estate or the stock market, Bitcoin allows entry with even a small capital  as low as $5 to $10, which isn't something I will even want to lose.such an investment should not fall under the category of what you can afford to lose.

Investing in Bitcoin means being part of one of the world's most revolutionary technologies. It's not just an investment in today but potentially one of the most valuable assets in the future. So, instead of wasting time and money on 'shitcoins', consider starting now it's not too late. The focus should be on investing what you are willing to HODL for the long run, rather than what you can afford to lose.