"Only invest an amount you can afford to lose" - page 8.

mk4

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Quote from: hatshepsut93 on December 14, 2021, 04:08:23 PM

Yes and no. The same principle still applies to any investment - don't go all in on just one investment or "invest more than you can afford to lose", but the risk of investing in stocks is lower than investing in Bitcoin, and so are the profits.

Both statements are hugely different though. Instead of $AMZN, let's use the $SPY/$VOO/$VTI/etc as an example; where it's pretty common for people to have their stock portfolio allocated to these assets with an allocation of 30% up to 70%. While it's not "all in", I definitely wouldn't say "invest more than you can afford to lose".

And yes, we can say that it's far less risky than BTC, but this part is starting to get really really subjective despite me mostly agreeing.

Quote from: hatshepsut93 on December 14, 2021, 04:08:23 PM

And stock performance is at least to some extent can be tied to how well the company is doing, but Bitcoin short-term performance ignores all fundamentals.

*snip*

Where's any guarantee that it won't crash just as fast for absolutely no good reason?

Short-mid term price movements with stocks are actually mostly not related to fundamentals; obviously as the markets can be really really irrational at times.

And yes, bitcoin short-term performance ignores fundamentals, and yes crashes do happen obviously, but we're talking about investing here, not trading. The stock market does crash as well! Just significantly less violent(remember the covid crash?).

Quote from: hatshepsut93 on December 14, 2021, 04:08:23 PM

The network is the same today as it was a year ago when the price was only $10,000.

It's "the same", except we literally have public companies and an actual country holding bitcoin in their balance sheets now.

sheenshane

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Quote from: mk4 on December 14, 2021, 06:28:44 AM

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 think that's still being volatile and nothing has changed, so it means there's still a risk on that part.

As we know Bitcoin investment is good for long-term holding and educating people especially when they are new investors, this could a good and appropriate word to use. The reason could be they think that Bitcoin investment will give an ROI after several days, so if they can't hold for a long period of time, this should be a good term to use upon giving them advice, "Invest of what you can afford to lose".

We don't want people giving their full assets to Bitcoin and hoping that it will give a huge return quickly, then suddenly there might be a shortage and pull out back the assets that having a huge loss, it should be can afford to spend.

Rengga Jati

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Quote from: mk4 on December 14, 2021, 06:28:44 AM

"Only invest an amount you can afford to lose."

This advice is very important for investors, moreover the beginners.
We cannot risk more to someone that don't know much yet about investment, moreover to be all in.

And I understand what you mean, considering how fiat and also financial condition right now.
But, I am pretty sure that that advice is very applicable and important to be implemented for:
- People who have small amount of capitals
- Beginners who are entering to such kind of investment
- People who do such investment as a low risk management,
- People who are not ready yet with high risks, moreover those who still need to manage their funds in order to think about income and outcome in certain period of investment
and others

If we are investing in Bitcoin, it may have lower risks than in altcoins. But we also know that so far, many people are also investing in altcoins (moreover new hype coins), that is why that advices necessarily important.

however, this kind of advice and consideration will not be the same to implement in everybody, in fact, different person may need different advice..

hatshepsut93

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Quote from: mk4 on December 14, 2021, 09:44:27 AM

But we can say this for any other asset that we think is a good investment, no? A person bullish on $AMZN also doesn't know how the prices will move at certain timeframes, but knows that it will be worth higher in the long-term.

Yes and no. The same principle still applies to any investment - don't go all in on just one investment or "invest more than you can afford to lose", but the risk of investing in stocks is lower than investing in Bitcoin, and so are the profits. And stock performance is at least to some extent can be tied to how well the company is doing, but Bitcoin short-term performance ignores all fundamentals. The network is the same today as it was a year ago when the price was only $10,000. Where's any guarantee that it won't crash just as fast for absolutely no good reason?

Ryker1

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Well, --I think that still works because once the amount that you invest in bitcoin it should be in long term and not in a short term.
But it does not mean losing your investment because of the amount that you can afford to lose, it means that amount that you can afford to do not touch for a long term and not for a weekly or monthly budget that you will need after a month to have food on a table.
However, if I use that line it would be ^{[Invest of what you can afford]} I will not include the word lose.

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I used to invest some money in HYIPs before and that is one hell of a very popular advice back then...maybe because we know that we were then dealing with pyramiding type of programs that will never last for months with the big possibility of a program just evaporating out of thin air anytime. Now, the same thing is always noted here in the cryptocurrency market and maybe it is because of the many possible risks that can come in anytime. Of course, we know that this is one market where volatility can be shocking - especially if one is into the usual or traditional investment vehicles. What mainstream media can be calling as a big crash is just normal in cryptocurrency that is why we coined the term HODL expressing that confidence that eventually the red will be replaced by the green anytime. Against the backdrop of the government using the quantitative easing technique as a push button option, many are now seeing that Bitcoin can be a big protection of wealth into the future. How many of us wished that we follow the path taken by that man who sold his house to get into Bitcoin years ago? That is, if you can afford to lose everything anytime.

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Quote from: Wysi on December 14, 2021, 03:10:17 PM

I think this statement works fine with me because I have learnt it via hard lesson wherein I nearly went bankrupt due to dumping all my investment in crypto, the reason why I hold this statement as true is for the fact that when we go through bearish market it will fall flat and then we will see bit green lines and we end up investing again, again it drops down thus we will end up selling out of panic if we have invested every single dime which we have, rather we need to have a calculated and well planned strategy to avoid getting into difficult situation.

You would really be ending up with this kind of common mistake on which a particular person could able to attained or experience.If you are really that kind

of impulsive fella in terms of emotion then you would likely ending up on this way.Invest on the amount that you could only afford to lose as for any

investment on this market not only limited on crypto alone but on others as well.Once you do invest then theres always some risk attached
to it thats why we should really be aware of that.

Wysi

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I think this statement works fine with me because I have learnt it via hard lesson wherein I nearly went bankrupt due to dumping all my investment in crypto, the reason why I hold this statement as true is for the fact that when we go through bearish market it will fall flat and then we will see bit green lines and we end up investing again, again it drops down thus we will end up selling out of panic if we have invested every single dime which we have, rather we need to have a calculated and well planned strategy to avoid getting into difficult situation.

Issa56

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I believe if you are investing in bitcoin you can definitely invest as much as you can but if you are investing in other altcoins pls always invest any amount you can afford to lose. Currently I don't even save money in bank anymore all my money is in bitcoin and also stable coin and am having little amount in other altcoins, bitcon is a very good investment and since lots of people are adopting bitcoin and bitcoin is been known by lot's of people on a daily basis, I believe bitcoin volatility is reducing compare to few years ago.

sunsilk

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I'm still telling that to people personally that are asking me about investing in bitcoin and in cryptos in general. There's this worry that another heavy inflation might crash the market anytime soon so it's really necessary to invest in bitcoin.

I agree that it had became less risky right now due to many institutions that have adopted it and as well as some countries that have a positive stand towards it.

I've seen also that this time, more people are engaging into investments and their easy option is investing in bitcoin so I think it works that when we educate people, it reflects.

michellee

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We can educate them but we can not force them, especially if they are greedy, to earn more and more money from crypto because human nature is never satisfied with what we have. We always want more and more and it is never enough.

Sometimes, I feel hard to convince those who invest in crypto by not using too big money and only using the money they can afford to lose. But the fact is when they make their first profit, and usually, the profit is too big than they expect, they become greedy and that is why they deposit more money because they expect that in the next trading, they will be lucky to earn more money.

But it is our responsibility to always remind them about that and we must tell them that the decision will be them because we can not force what we want on them.

haasanjui

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We are not investing for lose. We are investing for earn and lose and profit is part of every business. If you have proper information the. You only earn and if you not have knowledge then there are many chances that you can lose you money.

Ararbermas

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Yup for me in my personal opinion as well its totally necessary because we all knows how very optimistic bitcoin nowadays. I mean how it can always survive and break all time high value despite of some negative feedbacks around the internet and etc. It's pretty amazing to be honest because way back 2019 i had doubts about this assets. But the time goes by i was really amazed how it becomes so expensive. So for me no investing bitcoin isn't a bad choice because its a good decision to be honest especially on this kind of situation..

BlackHatCoiner

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Farewell, Leo

No, we should keep using this catchy phrase, but for the dollar! Shocked

Seriously now, due to the financial crisis we're going through, I recommend more broadly on investing. Whether that's bitcoin, altcoins, stocks, real estate, your own businesses etc., do me a favor and take care of your finances. Good times create weak men, weak men create hard times, hard times create strong men and strong men create good times. Currently, I believe we're in the last one.

Work less; learn more. People's biggest mistake, when it comes to finance, is that they add liabilities to their active income while they think they have added assets to their passive income.

At this point, I think that telling someone to get involved into bitcoin is more than just an investment advice; it's a life advice.

fiulpro

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Personally I didn't know anything about investments before I got engaged with Bitcoins and other cryptocurrencies, it became more and more valuable over the years and honestly have not only helped me with my education, but is also a big part in my life now. I had nothing to invest or loose but still I was able to save my income through campaigns and pay my fee. Bitcoins and cryptocurrencies during the pandemic are even more important I think, they have been providing people with not only support but also profits during COVID-19.

-They outperformed every investment in the pandemic !!
- The job opportunities are also increasing slowly pertaining to cryptocurrencies like bitcoins
- Long term holding reduces your chances of loosing a lot of money
- "You don't loose as long as you don't encash" is an important statement for me

Panic selling is the evil we should be wary about tho. Current economic system is collapsing undoubtedly, at least cryptocurrencies can serve as lifeboats.

amishmanish

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Quote from: mk4 on December 14, 2021, 06:28:44 AM

"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?

Totally agree. Now that you say it, I too realize that I have been saying this for so long, as a matter of abundant precaution, to newbies that it has sort of become natural to say.

When in reality, it is not applicable anymore. This was for a time when Bitcoin was only an experiment, institutional acceptance was nil and it was not a part of the popular culture. Now it has been cemented as one of the most important inventions of this century. It is an asset class in itself.

"Investing in Bitcoin" should in fact be seen like any other investment. Judge your risk capacity, watch the past action and then based on your best judgement, take your bets. Infact that is all that one does when buying stocks in companies.

DCA-ing is still good advice but its kindda insulting to say that "only invest what you can lose". It laughably implies that it can all go to zero. This advice now really only holds for all this other stuff like Alt-coins and NFTs. They CAN and continue to go to zero on a daily basis at some corner of the cryptoverse.

Cling18

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Quote from: mk4 on December 14, 2021, 06:28:44 AM

"Only invest an amount you can afford to lose."

Probably one of the most common pieces of 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 investment now compared to the past few years despite it still being volatile.

Thoughts? Opinions?

I still apply the same advice because no matter what we think of crypto, it's still volatile and has risks so I would rather invest the money that I could only afford to lose so I wouldn't have regrets in the end. If we'll put all our assets in crypto without thinking about the risks, it might affect our current financial status, or worse, we might have losses that would have a huge impact on our financial stability.

VanityWallets2015

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I agree. I think that making investments twin risks. And so in my own perspective, this advice is really applicable in anything that includes putting out of one’s possession that is valuable into something that can either be successful or not, depending on macro-environment factors. Especially today that everything, even those recognised to be going smoothly, can go wrong anytime so really invest what you only can afford to lose.

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Quote from: mk4 on December 14, 2021, 06:28:44 AM

"Only invest an amount you can afford to lose."

I also often hear this sentence, but for me, it is "Only invest the amount you can afford to spend" Maybe because my investment is only according to the capacity I currently have and I can allocate at this time for Bitcoin, whether it's $10 I'll definitely set aside. Either it has become a tradition or I really believe in Bitcoin. However, that is why I will allocate the remaining money after all the requirements at home are met. If it's still not fulfilled then I can't allocate it for Bitcoin, but it becomes double when I already have more funds allocated next week.

mk4

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Quote from: hatshepsut93 on December 14, 2021, 07:23:44 AM

Bitcoin is still risky because there's no way to predict where its price will be going next. Literally nobody saw the current bull run coming, we had a market that was stagnating for a long time, and then suddenly the price started doubling extremely fast. There were no fundamental changes, so similarly a crash might come for no big reason at all.

*snip*

But we can say this for any other asset that we think is a good investment, no? A person bullish on $AMZN also doesn't know how the prices will move at certain timeframes, but knows that it will be worth higher in the long-term.

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