Topic: Why you should use spare money to invest - page 14. (Read 1812 times)

Yeah investors have to calculate their risk management before deciding to invest in any kind of investment. That is why i agree with you both that people should learn about risk management before investing. on this knowledge they will allocate their money to invest include from where is the money source to be invesment. either from saving or loan, people should have healthy wealth with combination of assets and liability.

Every investment has a chance for profits and losses. So, it is untrue if you assume Bitcoin isn't the same as other investments. But, I agree that Bitcoin investment is high-risk, that's why only use the money that we can afford to lose. So, it won't be a big regret although we fail to get profits and just get losses.

When we are a newbie, the focus should be learning or getting sufficient knowledge/experience. It is strange to use big money when you still have no enough knowledge/experience. But if we already have enough knowledge/experience, it is no problem to use bigger money.

The fact still remains that, in bitcoin investment, never buy when the price is high because you may be getting in at the wrong time and that could affect your investment position for a long time, so the best time to buy bitcoin is when the price is low e.g of tou buy Bitcoin at the current price of 26k it will be a good discounted price, compared to those who open a buy position at around 30k+ BTC price, or those who bought ag 17k and refused to DCA when the price rises to 30k+.


Timing is very important when it comes to BTC investment and never to overtly obsessed with holding when the price increases significantly above the bought price, or failing to buy during a dip.

I fully agree with what you say. Because basically investing in any case must be based on insight regarding the assets to be entered. Not only in bitcoin but also in other investments that are even less risky. Everything requires careful consideration and analysis. Especially on a fundamental basis when it comes to long term investing.

And to invest in Bitcoin we must first know that this asset carries a higher risk than other investment fields. And behind all that Bitcoin is also the most potential investment than any other field. But it is very important for us before investing, we must first prepare the money to be invested, which is really cold money and will not be used for a long time, maybe even ready with the risk of loss. Maybe longtime investors know this. But for beginners things like this are often overlooked. They don't even hesitate to put their investments in one basket. Even though this is a basic thing that should be avoided by an investor.

when someone decides to put their money in an investment, they must already be aware that they are taking the risk of losing. beginners still have to learn how they put their money into the right assets. it will help beginners not to panic too much about the investments made.
beginners are better off focusing on one asset first, like Bitcoin, and not trying to put their money in shit tokens.

Lots of people have endangered their life just because they went to take loan to invest, we all know that every investment is risky, I see no reason why you will take a loan to invest in cryptocurrency, if you are planning to invest, then you can start from the little you are having and you will keep on growing it gradually, it’s better than you taking loan to invest, so many people have committed suicide because they took a loan and they lose money, and they don’t have any means to pay back.

Have seen newbies taking loan to invest in shit coins, don’t you think that’s funny, why will you take a loan and the only coin you can invest it on is shit coins, it’s better you take a loan and invest in bitcoin if the loan is for long term, rather than taking a loan and investing in shit coins, if you take a loan and invest in shit coins, it’s just the same way with you taking loan and gambling with it.

I can’t invest my personal money In shit coin not to talk of the money I borrowed, I don’t know why some people just prefer taking unnecessary risk. But I think some people taking loan to invest in shit coins don’t really know much about cryptocurrency, maybe their friends introduced them to cryptocurrency and convinced them to invest in a particular shit coin, it’s going to pump hard and they will be very rich.

    Profit and loss is the first principle of trade and one should ready for any unforeseen situation, if doing aggressive trading. Business management is a detailed science from which we learn about the rules, method, principles and also the decision making ability, which is more important for a trader.
    Multiple experiences gives lesson to the investor, and also brought vision of market whom he involved. Profit and loss is the part of trading, and don't be panic about that . A man learn about his mistake or experiences during his life or time he spent. One should get ready for any situation.



  For newbies , at first, It is quite important to know about the investing methods, techniques and trading rules. One can learn from traders or gain by trading with small coins ( but before this, must know how to do that). With small money/capital, take short step marketing to learn what the trading is.

Often people say, investment is one of the good goals for the future, investment doesn't have to raise a lot of money first, there is intention and will, investment is easy to do.
Sometimes we think we can buy 2-3 packs of cigarettes a day, why can't we afford to invest and find it hard to do....think of investing in crypto, like buying cigarettes $ 7 a day, thirty days $ 210, in one year we have invested $ 2,520 in crypto.

Invest a small amount, it will educate us to be big, if we know crypto we shouldn't think we can't by having to wait for a lot of money to be generated, seas can accumulate slowly, mountains can slowly erode become flat.

Invest in crypto according to your ability, don't force it, the results you get will definitely be good.

Well said. This applies not only to beginners but also to experienced traders who may not know much about risk management and end up losing not only their winnings but also their capital. It's just a matter of being wise and knowing how to control your money effectively.

To be honest this topic is quite interesting as I've seen many people lose a lot of money due to their poor money management habits and some still haven't learned their lesson. I believe they should use demo accounts to avoid making costly mistakes and learn gradually, starting with a strategy of investing only the money they can afford to lose or the spare money they won't regret losing later.

Your investment advise does transcend beyond just bitcoin investment penetrating into other facet of businesses and it's more honorable and peaceful when people put in to invest amounts they are easy to forgo in case of a loss in the investment compared to going beyond ones financial strength.


Most times, it's the lack of risk management knowledge that puts many investors out there into making and taking wrong decisions about their finances. And it would be helpful should investors try to learn about risk management to help them in certain financial decisions about their business. As there is a clear distinction between an investor with a good risk management knowledge to another that doesn't posses a glimpse of anything about it.

You were lucky but think that it could have worked the other way around if you bought it when the price was 65k and now you were waiting for the bull run to recover your investment. That's why you should follow the rule about what you can afford to lose: it's the only way to detach emotions from a rational activity like investing. Think about it, if the price was 65k instead of 17k when you bought, the difference would be immense.

Never invest money you can't afford to lose, especially in
cryptocurrency industry given the risk involved,this rule should always be followed.Being reckless and investing large sums of money in any type of business that you can't bear the risk at end can easily cause the investors to suffer a great deal of harm.


Both aspects are good to take into account, especially for beginners, but if I were to choose, I would choose to focus on learning risk management first. This would help me realize how much money may be appropriate for that business in order to generate a good amount of profits.

Although a demo account will give a real condition with the current market, but there's no adrenaline and you're not worried if you make a mistake. That's make them tend to make profit because they're buy it and wait for few second to sell, repeat. While the real market, they will buy, but the price only increase a bit and it's make them to wait until raise for at least 1-10%, but the reality isn't, the price keep decline.

I'd consider to trade with small amount money than using a demo account.

That is very true what @OP said. As inexperienced beginners, they can use small money first to learn to invest while learning more about Bitcoin so they can know how to invest properly. And even though they are still losing money, they can profit by holding their bitcoins.

But unfortunately, there are still many people who are not ready to see the temporary loss they are experiencing right now so they sell their bitcoins and leave it for a while. But people who believe in Bitcoin and have learned a lot about it will still hold on tight because they believe it will get a moment to increase.

And that's why we have to use the money we don't use for anything to anticipate if we experience a loss and not sell it when we face a sudden situation requiring money. That is so that bitcoin investment is not disturbed and we can still hold onto the bitcoin.

Always know that whatever amount you desired to invest, it also comes with possible losses. However, if you can prepare yourself before investing by obtaining more knowledge and investing skills, that will help you to prevent your funds from losing, or lessen the risk of losing. For me, it doesn’t really matter as to how much you start to invest, as long as you can manage yourself from losing them, the that’s the most important. Losses that will not trigger you even several years after that loss had happened.

As stated, the demo will help us understand trading features and aside from that the flow of the market.  It is the best way to test ideas without losing anything.  For newbies where the person is not accustomed to the features and flow of the market, it is the better first step than diving to the marketplace and trade directly.  It may not help a person for live profit but at least it will help a person to understand the market and avoid unnecessary losses.


Not only consider the risk but rather understand the risk involve, and learn how to counter or mitigate it in order for us to minimize our losses.  This is where risk management comes in.  I agree that before involving in any investment venture, one must do his research and learn from experiences.  Thus, a demo account can enable us to apply our learnings without any risk involve to enhance our trading knowledge and we can always shift to real trading and investment once we feel that we are ready.

Having so much money without knowing what to do with it is really disturbing for someone who wants more of it. After all your struggling from day one to the end as someone who's working, and you know it's time to rest I feel it's time to use half of your money to do something that you know would bring in more profit.
It is never best to use all you have labored for because if you do and it happened that what you expecting didn't go as planned then you have your self to blame.
Investment for starters is like gambling never start with a bigger amount unless you have something that much bigger than what you want to spend.

Investing using your money you can afford to lose is one effective way that you will last longer in your investment. At least, if you lose in the start, you can still manage to recover easily that loss and then invest again on the coins you believe will work out in the market. That’s also one way to lessen the risk in any investment especially like bitcoin. Bitcoin cannot assure us that the whole investment will be profitable, so it’s best to invest only on the amount of money that won’t leave us regretting once they turn as a loss.

I think you wanted to say spare money and not small money. Even talking about spare money these days, is our income really enough for our expenses that have been affected by increase in price of things that we still have some to spare? Investing in Bitcoin is no longer about spare money but money you can sacrifice, and you do not just have to do it once, but many times as well. Sometimes you will be able to sacrifice more and not so much other times, but if you can continue sacrificing a portion of what you have to invest, your investment will grow bigger than you expect, than you could have possibly sacrificed at once.

I totally agree with you! I learned this lesson the hard way when I first started investing. I was so excited to jump into the market that I invested a sum of money without really knowing what I was doing. Needless to say, I ended up losing quite a bit.

It's been a few years now, and while I still experience some losses, I've learned to manage my risks. Diversification is always a good thing and it's wise to spread your investments across different assets to minimize risks. But with age and experience, I have come to realize that investing demands considerable research and study. I have learned the hard way not to throw my money into something I don't entirely comprehend, regardless of how profitable it may seem initially. Even with diversification, it's still important to do your own research and due diligence before making any investment decisions. That means taking the time to read up on all the relevant information. And don't be afraid to seek advice from professionals or experienced investors, but always remember that the final decision should ultimately be yours.