Topic: Is investing more than you can afford to lose inevitable? - page 3. (Read 491 times)

You can spend and invest more than you can afford to lose, perhaps it was your choice but never you'd think it was a smart decision as you are dealing with a high-risk investment. Rich people have a lot of money and a lot of resources that is why they are not afraid of spending more but for poor people, that is something different. Putting to the instance that if we have to spend everything we have, what had left us in case our investment fails? It is very important to think wisely and to think not just by today but also in the following days. This is not about thinking the negative but we also have to make ourselves prepared for it.

I doubt it as you have the full control on your funds and it’s your own choice if you invest more than you can afford to lose or just invest a small amount enough to lose. I think the best solution to avoid this is you only invest into another investment if you have made profits already in your first investment. Get back your capital and invest your profits only and roll it through diversifying.

I think this serves only a guidelines for newbies to not go full when they aren't used to the market but if you are in this market for a long time that saying is less likely you were going to follow. Bitcoin investment may be risky but if you know what you doing then you proceed to invest as much as you can or buying the dip as much as you can since you already have a plan that you will be holding your investment for a long time.

And as what people are saying, the more it's risky the more rewards you will get.

Yes, this is very popular.
Actually, everybody will have their own rate or ability to afford it.
For me, for the first-time investment, I will only use free money in which I am able to let the money if they are lost when investing. Free money means that I will not use the money for other necessities. that is why as a beginner at that time, I only spent a few amounts of money on the investment. And of course, I will not take a high-risk investment of new coins or tokens.
So, when it's lost, there is no big problem.

After getting profits, I will use the profits to save, the purpose is that I can collect the profits until at least the capital that I spent at first.
So, if later, I get more profits, this is a bonus. But if there is no profit anymore, at least I have got the capital again or I only lose a few. and this is growing with some percentage of profits that sometimes I take to add capital for investment or trading.
I know that managing money for investment and trading is not easy, I learn from many mistakes actually. You will also do it later

If you talking about Bitcoin if you invest in Bitcoin there is a possibility to lose profit that is why most other people said invest only what you can afford to lose because Bitcoin and other cryptos are too volatile and not stable as dollars unless if you are holding stable coins like USDT/USDC.

However, if you know the right time when to invest in Bitcoin then what you can only see is profit. Like others including me, blockhalving is the right time to invest but if you believe in Bitcoin right now you can start investing in Bitcoin and hold them tight for a long period of time but expect for price drop this coming few months.
What I would like to learn is that Bitcoin is volatile and you should learn to do some analysis on when is the right time to buy.
My tip is read the Bitcoin price history on Wiki you can find it here https://en.wikipedia.org/wiki/History_of_bitcoin then scroll down.

I prefer it this way, trade with what you can afford to lose, because traidng is highly risky.

Invest what you can afford to lose on altcoins, because they are more volatile and many are not reaching all-time-high or taking more time to reach all-time-high, many become shitcoins and many become dead. Even many become pump and dump and many are just fake.

Bitcoin reach all-time-high in 2013, 2017, 2021 unlike many other cryptocurrencies (altcoins), it can be an investment for many people if it continuously reaching all-time-high unlike many altcoins. That is why you can see some people prefer to still hold bitcoin as well.

But bitcoin is a speculative asset in short term while a store of value in long term. Because of the speculative value of bitcoin and volatility, some people still prefer to advice people to invest with the amount they can afford to lose. But in long term, profit will be the result. If someone carefully study about bitcoin price history, bitcoin gives opportunity to be store of value in long term and also an investment asset, but volatility can make novices to fomo and sell in loss at the wrong time.

Real estate is a business and people see it not as risky as investing on assets like coins, the rule may not apply. It depends on how risky an asset is, there are some businesses that return are more guaranteed if legit.

But we should not forget that in life, almost all are like gambling, but the risks are better in one than another and some make profit certain than another.

Truly it is better to play risky but yet maintain safety than having the opposite for an experience, many people even forget the risk associated in cryptocurrency and focus much on their selfish desires to make morr profit at the expense of others loosing but wouldn't admit the same situation come all over on them the same direction it started from, risk is the major key and we all fall a victim when we got over excitement of a particular cryptocurrency which is too real to believe.

Good question, I will reply based on how I go about mine, others may have their own approach.

I know how much I earn per week or month. I send a certain percentage to my local bank account and that is for my living expenses.
I then send a percentage for my investment, which is steady but little. The remaining percentage will remain in my portfolio as a stable decentralized coin. It keeps growing for projects, other investments.
By this, I do not save in fiat and I do not also investment more than I can lose.

Invest only what you can afford to lose is a very popular phrase for bitcoiners, but how do you manage to do it, many bitcoiners have lost fate in fiat currencies because of inflation, so they do not consider banks to be an option for holding. Some people say they only keep what they feel will be sufficient for them per month, and invest the rest of their income, will that not be investing more than you can afford to lose?

If i earn $400 for example, and i keep a $100 and invest $300 in bitcoin, with time my bitcoin will grow and i will have so much money in my wallet, but no money in my bank, and this is exactly how people claim they go about things because of inflation, isn't this investing more than you can afford to lose? And if you are in for diversification, and in addition to bitcoin investment you put some of your money into real estate, gold, and the rest, and only keep what can sustain you per month, isn't it investing more than you can afford to lose?

How do you go about this personally? I am asking because many people especially bitcoiners do not trust the banking system, with inflation and censorship problem, in that case does it mean that investing more than you can afford to lose is inevitable in this current system? Because your money is somewhere else, either bitcoin or other investment.