Topic: Throw more light to the associated risks involved than just the profits. (Read 138 times)

I think it has been told almost on every thread which is "never invest more than you can afford to lose".

People are keen to make money so they don't really concentrate on everything just only on the money aspects and may face issues if the outcome isn't what they expected.

Anyone with experience in the crypto investment or generally any investment will analyse all the risk associated with it before jumping in.

Any newbie will easily fall for the same strategy of buying high but you did well by telling him to hold, even if he is not prepared for this there is no other way unless he is willing to leave with his losses.

I know someone too who was told by another person that Luna can be mined through a platform, and you all know that Luna was never a PoW algorithm project I told him it's a scam, he avoid my warnings and still went ahead, someone created a Ponzi scheme and told people to go buy Luna and deposit on the platform and click on a fake mining tab, thing is when it got to his own turn to cash out the platform seized to exists.

The funny thing is Luna crashed a month later... This person knew I was into crypto before him yet he choose to follow a stranger's advice.

Are you a financial advisor or a great cryptocurrency expert? Why do you even go to such conversations, unless you want to be responsible for another possible disappointment and maybe even a financial loss? In my opinion, that person has two options - simply wait for the price to be higher than when he invested and then sell, or accept the loss if he needs the money.

Money doesn't fall from the sky, and neither does good advice, no matter how well-intentioned.

This is the main issue with investing in bitcoin. Nobody actually discusses the danger or potential losses instead, they only discuss their gains. All investors take risks, either directly or indirectly, but this risk level is minimized because he made the right decision by investing in bitcoin first. He then carefully considered the price and volatility so that, if he was lucky, the price dropped when he bought or surged. What needs to be taught is how some experts study this trends with bitcoin price using the chart after speculating, they carefully study and make predictions on possible outcomes.

And finally I found someone who has the same mind set with me about this crypto space and the people talk so we'll about crypto forgetting that the disadvantages ate far more than the advantages and this is one truth that is very difficult to accept and Influencers or anyone trying to invest a fellow into the industry who barely or boldly expose. I agree with OP that the losses should be preached as much as the profit if not more that the profit because most times  what really brings issues is the fact that  there are losses not even profits.
Please we just always preach more of the awareness of the loss and also make each of our recruits be responsible for every action they take.

This is applicable for people who are not in this forum and very important as you involve yourself in raising awareness about bitcoins to people around you. They have to know the risks with bitcoins when invested in, to help still shape their decisions should they still decide to go ahead with it. People who know the risks with bitcoins are better prepared for any situation that arises and affects the price that they invested because they understand that these things happen. People who know the risk turn out to be better HODLers.

There is no such thing as easy money. Bitcoin is an online decentralized money and just like fiat and stocks, the market always goes up and down. This is a common problem because even those that are well-educated in different fields do not have a deep understanding of how money and our financial system work. Just the other day, my father an engineering graduate called and informed me that someone told him about an online bank that gives 7% monthly returns to its depositors and that he is interested but he also needs my opinion first. 

To say the fact everyone investing is undergoing taking a risk either directly or indirectly, but this risk level is minimized because he has chosen the right choice by investing on bitcoin first, then considering bthe orice and volatility so a way that when you buy the price dropped or surges if lucky, what needed to be taught is the way some expert study this trends with bitcoin price using the chart after speculating, they careful study and make prediction on possible price moves coming and this makes them hold the more, pull out or buy while others don't just know about this logic and think bitcoin price is just being manipulated.

As a responsible teacher to newbie, it’s really a must to emphasize risk involved. But I wonder how come the person you are in discussion didn’t know the risk involved while he knew that price is pumping on extreme level. He should DYOR for more details aside from his mentor teaching it’s his money. A newbie that doesn’t study on their own and just following what’s being told will not gonna success.

Also, You mention that he invest at peak to have a profit for a short term period. This clearly means he knew the risk since he is investing for short term due to the danger of falling by buying at peak.

How am going to convince him to buy into this strategy is what I don't know where to start from for him to believe it will work out well for some profits, and another thing is if he would have  available $200 at the moment  to DCA for another one year or more.
I won't conclude anyway not until I relate to him on this idea.

That is one of the biggest problems investing in Bitcoin has.
And people see it as a very simple problem and no one wants to profer solution to the problem. I think I know where it originated from.
People that operate an affiliate marketing with bitcoin, whereby people who invest in one platform or an exchange will be given some percentage. So these people in the quest of having their percentage paid to them will go a long way preaching the only good side of bitcoin to lure people into invest without telling them the risk aspect of it, that is where the mentality was birthed.

We that are getting nothing if people invests in bitcoin, let's try to be honest and tell them the simple truth.

No need to panic, people who bought Bitcoin at 2017 when Bitcoin price hit the new ATH at that time are making profit if they hold until 2021, so if your friend bought Bitcoin at 2021, there's a good chance he will make profit if he keep holding until 2025 or next 2 years.

If someone invite me to join his business or something about financial related without mention the risk, I'm pretty sure the business isn't good because he's trying to scam me. Similar like Bitcoin, I don't see any reason why someone need to force anyone to buy Bitcoin, except he ask anyone to register an exchange with his referral link.

He bought when the price was very high, it would be hard on him when the price declined and got to less than $20000. I will advice you to continue to advice him, but let him know the profit that can come from DCA, tell him to start to DCA when the price is still low and wait for like 1 or 2 more years. I advice him to DCA because it would drop the price down more to when he will be making profit.

Assuming he bought at $65000 and now bought another bitcoin of $200 now at $22800, he will start making profit at $43900 instead of $65000 and because the money has been doubled, the gain would be doubled. Investment needs good strategies.

Often times I have stumbled upon posts that talks elaborately about the lots of profits that it's in bitcoin investment. And how those people that are yet to invest are missing out on these profits by not investing.
Yes I agree to an extent, there's profit in the crypto industry, but in my opinion the uproar, the series of emphasis generated about  profits that is in bitcoin when you invest outweighs the idea about the risks that's also accompanied with such investment too.
I am raising this issue based on conversation I had days ago with someone I would rate as a newbie in the industry. In our conversation I discovered he was not exposed to the part of the risk associated as he was told much about the profits aspect. And the time he was told about bitcoin was as at when bitcoin was at it's ATH, he then bought BTC worth $200 (a good sum in the local currency) hoping to get profits within a short frame of time. But unfortunately, the bear market now sets in about a year plus now. And he never prepared for such because he wasn't told that this is one side of the risks involved. All I could say to him, was that he should keep being patient and hopeful cause someday the bull market will set in, only that we don't know when.

In conclusion, let's also lay some emphasis on the risks associated with investing in crypto as we do with the profit too. Has anyone also met with someone that invested in bitcoin like in the case above as I explained, and what was your words of encouragement for them.