"Only invest an amount you can afford to lose."
Probably one of the most common advice I've heard when it comes to investing in bitcoin; and I've used it a lot of times too. But honestly, in our current situation where fiat is getting printed like hell, I started to use that statement less and less. It just seems that holding bitcoin is now totally necessary.
Don't get me wrong, we should still be heavily educating people when it comes to proper investing in general with DCA-ing and probably not going all-in on one go and stuff, but I think bitcoin is a lot less risky of an investment now compared to the past few years despite it still being volatile.
Thoughts? Opinions?
I still use this statement and still live by it. Personally, this quote serves as a reminder for me to do risk assessments before entering anything. May it be crypto, stock market, gambling, NFTs, or other forms of investment vehicle and money-making things, this quote applies. Only investing what you can afford to lose is a great reminder for us to only use and spend our spare money only and not the money that we need to use in our daily needs or other important matters. Because everything that involves money to generate income is considered a risk. Even a small business is a risk. Hence, before deciding to invest it is really important to do in-depth research first to avoid regrets and losses later.
If you know it to yourself that you really did your best to search about what you are trying to enter, then you have a little to worry about. Of course, the risk is still present, but you already managed to mitigate big losses by researching. Usually, other risks present just really depend on the external factors in which you have little control. That is when you just hope for the best and hope the odds will be in your favor. Once you did your part, you just have to wait for the results because we all know crypto is volatile. The value of your coin will depend on the market demand.
It's really better to have an investment in crypto nowadays no matter how small or big it may be. An investment is something you could use in the future when you need to. Having it in crypto which is lesser prone to inflation is a good thing to avoid your funds depreciating. But I still suggest to invest what you can afford to lose and to not go all in, since not every day is a good day in crypto. There would always be times that the market would hit rock bottom and during those days, you will really have a hard time withdrawing your funds because of low value. So, the bottom line is, if you really want to invest, just use your extra money. The money you can afford to be stuck for a while or even lose permanently to avoid emotional stress when chaos starts to take over.