Topic: Is investing more than you can afford to lose inevitable? - page 2. (Read 491 times)

Apparently that is what it is, each member or enthusiast with his or her own way of doing it, i have invested a lot of money in bitcoin and if i am to be honest it is not really money i can afford to lose, but my plan is for the long term, so i am not worried too much. I am also working, so i have a steady income, i am learning new skills too and studying different types of investment i can diversify into, all of these just creates more options and opportunities for myself, and i believe that is the correct way to go about things. Bitcoin is a fascinating phenomenon and i have a firm and unflinching believe in the network, and i know long term in will all be worth it, both for those who want to easily use it as a currency in numerous places, and for investors too.

I don't feel that way. When I want to invest in high-risk asset , I firstly put some money aside for this. I would never forget about my investment plan and my goals. I'm a firm believer in setting realistic goals for myself. That way I'm sure I won't invest more than I can afford to lose.

Well, I can relate to that. I'd say that I'm cash broke and majority of my investment is in bitcoin these days and some altcoins. It's because due to my past mistake of selling at a lower price before the bull run came and that's a regret that I've been learning from.
We all have our own techniques in investing and difference in tolerance based on how much we like  to invest. If you know that you can take the risk, you'll be unstoppable and investing more than you can afford to lose. But, that's okay because your plan is for the long term.

Investment is base on what you can you not think about twice after investing, i know that it is good to make a specific amount of funds you can invest and it vanishes you won't think of it twice or you won't demand it back. That is why it is good not to borrow to invest in any platforms because if you do and you lost your funds, you now have a double load of payment and it can caused high per tension to some himan beings that HBP. What op analysis is nice advice to new people that want to go new in investment

This could have been avoided in it entirety but because of thier negligence to be cautioned and over ambitious to wealth and fortunes makes many investors go extra miles in making investment on the wrong coins and at the wrong time, if one must invest then it should be from the profit realized from the previous investment as such is expected to return back for an investment just to replicate it kind, and nevertheless we must never forget that investment need a maturition time you yield return and same applies to the risk therein to loose from it.

You didn't get the concept. I only invest a certain percentage in crypto and retain the rest which does not include living expenses in decentralized stable coin.

Not all stable coins are centralized. There are decentralized stable coins and Dai is one of them and it's popular.
I guess you understand how one can save in crypto and still avoid volatility and yet remains in the decentralized system.

Les look at it this way; there are different aspects to an investment in the crypto space. Either your buying be it bitcoin or altcoins to hodl, trade or maybe come up with a project, a gambling site and what have you. The language never changes and it remains you "investing what you could afford to loose ". Which ever way you chose to ho about it, what you put in becomes what you can afford to loose as far as this principle is concerned and your surely going to part ways with it should the investment go south.
Fiat undergoing inflation and more being same of its downside, bitcoin has still got the bearish market where relatively all coins get devued and so, you've got something to be pained about too. No where is completely safe always and so, you've just got to do that which is more convenient.

Invest for the amount you can afford to lose, it is not only about the possible losses you will incur due to market fluctuations but also about the possible loss of your assets from the wallet due to not having good security regardless if it is due to hacking or losing access to the wallet.

The OP needs to learn when is the right time to buy and hold it long term as an investment asset, but he has to learn about how to secure his wallet long term. So we both need to know that the risk of investing in bitcoin is not only about price fluctuations, but also about wallet security which is 100% the responsibility of the user himself.

It's really nothing to worry about. I went through several Phases of bitcoin crash since

2017 bitcoin crash up to 43% hit a low of $11,100
2018 was bitcoin's craziest crash, dropping 83% to a low of $3,140
2019 Down 53% to $6,430
2020, no less crazy, down 72% to a low of $3,860
2021 down 55% to price $28,600
2022 it drops to a low of $20,178.

Now just need to calm down and add bitcoin assets for the long term until a new ATH is reached.

Not really. I don't know. Perhaps if you're that convinced of Bitcoin, you don't really believe that you're gonna lose, that is, despite the most severe of bear markets. Or it just seems to me that the more you believe in Bitcoin and lose trust in fiat, the more you take the risk. And that which you can afford to lose grows higher and higher that even if you're 90% invested in Bitcoin, it seems you can afford to lose it because it's Bitcoin, and you somehow feel assured.

I hope I'm betting on the right thing, though. But to those who've been through 2018 and survived, what's happening right now is nothing worrying.

Your example is the opposite of most others, as most invest only a small portion of their income in Bitcoin and spend the rest of their money on regular living needs. Another misconception is that by buying more and more Bitcoin you will have more and more money in your wallet, because the value of that BTC can change at any time - so someone who bought BTC at $40k is today at a loss of as much as $20k if decides to sell.


Everything spent on things like cigarettes, alcohol, and even coffee is in some way lost and wasted money, and even going to expensive restaurants or visits to cinemas, considering that I have top-quality TV at home and can prepare the food I want, all with considerable savings. All the money I save that way can be invested in Bitcoin or something else, and that money is always something I am willing to lose at any moment since I know how I saved it.

Exactly what I meant, there are some assets that are not worth it to invest into, some are just like ponzi schemes and some are like real casino and sport gambling, I mean highly how risky they are. But assets like bitcoin, you can still make more research, being patient, allow bear market to come and invest. As bitcoin has dropoed from all-time-high which was $68900 to $21000, that is a high drop for people not to miss another upcoming bull market, people that invested at $30000, should not also sell because bitcoin can not remain below $30000. In short term, bitcoin dropped but since bitcoin was created, up to 2021/2022, it always reach all-time-high, but it has period for this. The long term profitable assets like bitcoin and very low risky businesses, the rule does not apply at all, people will always want to make profit form such asset like bitcoin, although, experienced people will have a kind of investment regimen that will make them to invest appropriately and at the right time to maximize their profit.

Thank you Darker, you got a complete hang of what the thread is all about, i am sure many of us invest more than we can afford to lose because of inflation and the loss of trust in the banking and traditional financial system, but we still advise others not to do the exact thing we are doing.
So can we then rather say that: you can invest what you can't afford to lose if you have the ability to control your emotions and not be affected by bear markets and plunges? But if you can't do that, invest only what you can afford to lose.
This is another way of saying invest only what you can afford to lose, but honestly how many bitcoiners can say fuck it if they lost all of their money in bitcoin today, i can't and i am so sure many of us here, maybe including you too Ddmr can't say that too, not that we may commit suicide or something, but we will be so damn affected by the loss, so are we investing more than we can lose then?

As usual, the threshold associated to the mantra is customized to the person based on multiple factors: current portafolio, income, expenses, expectancies, risk tolerance, preferences, responsibilities, economic freedom within the household, and so forth.

In general terms though, I’d be comfortable by assigning an amount that, if worst comes to worst and it is eventually lost, you can simply say fuck it and continue with your life without any real remorse nor significant impact on your finances.

I did (specially with this or that crap of a coin/token)... I could have gone in way further, but I wouldn't have felt confortable, so I did say fuck it and that was that.

"Don't invest more than what you can afford to lose"

If you invest more than what you can afford to lose, what will you do when you actually lose it all? Suicide (don't please). However, if don't suicide and you already are bankrupted because over betting, what should you do next?

Back to work, from zero and even with lot of debt. You will have a long time to recover from your lose and repay all of your debt.

I think an advice like "Always invest with your own money and don't invest more than what you can afford to lose" is better advice.

Although kind of overused, that invest only what you can afford to lose is probably not being observed by a lot of Bitcoin supporters. But how much is that which a man could afford to lose? If half of somebody's wealth is into Bitcoin, could he/she afford to lose that? I don't think so. If a quarter? Still not.

I myself is heavily invested in Bitcoin and in the highly unlikely event that Bitcoin goes to zero, the first thing that I'd be doing is to update my CV and look for a job. And I guess there are a lot of people who have also gone into the rabbit hole too deep. But who can blame us? Fiat has been rampant with abuse.

I guess this advice is perfect to newbies, to those who have not cast the die yet, to those who are still emotionally affected by bear markets and dips. But there are some who have crossed the Rubicon and it's either a million or zero for them.

In my opinion, I think it could also be the same as invest what you can afford to lose if you say that after dividing the money you earn like food, bills, clothes and other expenses then the rest will be for investment. Why would I say it is the same?. Because, you already have money for the things that you need as explained above so, the rest of the money left would be your pocket money as I call it or spare money then it means that you can afford to lose it. Just invest what you can afford to lose. For example, I earn $1000 where $200 is for the food, $300 for water and electric bills, $200 for clothes and $100 for fuel/gas then the rest will be for investment which means you can afford to lose it.

Because many people invest and think that after a month they can cash out their profit knowing the fact that Bitcoin is very volatile and there's no time frame when the profit will come.  There's no need for you to borrow money and invest in Bitcoin hoping it will double the profit, just what you can afford to lose and don't invest that supposedly the budget for your daily needs or for the foods on the table.

Bitcoin is profitable if you're willing to wait for the perfect time when the bull trend will come, there will surely be a high return.
What I've noticed to gain reward is only sell when your profit was surely there and don't sell under the price where you've bought it, IMO.

Where do you send it to, your fiat bank account, or saving it in crypto, either bitcoin or some other coin?
Stable coins are centralized, so i guess you invest the remaining in a decentralized coin like bitcoin that is volatile, how then aren't you investing more than you can afford to lose, when you only keep a certain percentage for your daily expenses, and the rest are invested in assets that are risky. You know every investment has its risk right.
I know that bitcoin is for the long term, but the warning of "don't invest what you can't afford to lose" borders on both long and short term, as it saves you from running into trouble in both terms, your post looks to be in agreement that it is inevitable to avoid investing more than you can lose with bitcoin.
My post is about if it is possible to avoid investing more than you can afford to lose as a bitcoiner. Are you in other words saying there are right times to do so? You also know that no matter how much analysis or studies you make it is difficult to game the network and get it right on time or perfectly, what if the time you feel is perfect turns out not to be, and you already went in with more money than you can lose. I am asking to know how people go about these thing as many no longer trust the banking system, do they just keep buying bitcoin, leaving only what is necessary for their daily expenses in their bank accounts, isn't that investing more than you can afford to lose?

I think this sums up your whole post, OP.

While the phrase "invest more than you can afford to lose" sounds compelling at first, you must always follow this with proper logic and common sense. Again, investments are investments- meaning you only delve into investing if you have the extra cash AFTER you have paid all of your obligations to yourself or to your family.
 
In the example that you provided, you took $300 out of the $400 that one earns per month. While this may be the case of "invest more than you can afford to lose," still, $100 for the whole month seems very impossible for an individual and financial problems would kick in this kind of example. Follow investment with logic- only invest the amount that you are willing to set-aside for future transactions.