Bitcoin Forum

"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?

In trading, gambling, altcoin that seems like gambling, and options which are also gambling in my opinion. That is where that statement of investing what you can afford to lose are valid.

In holding bitcoin, this should be the proper in my opinion. 'Hold', if the price is plummeting, then hold more. If the price continues to plummet, hold more until the bear market is over. Then the price will increase again and later on reach all-time-high.

Some people will panic and sell at the wrong time and lose, instead to wait and see the price soar (increase) again.

The worst investment we can have is fiat holding. Fiat depreciates all the time. Not only this time. Check decade(s) ago in your country and compare your fiat purchasing power as at then and compare it to now, highly inflationary and depreciate fiat will be the 100% result.

I still use it. A lot. Maybe a bit changed like "only invest an amount you can afford to lose or to keep locked in bitcoin for very long time".

While indeed fiat is getting printed at an incredible rate, we should not forget that some simply cannot afford to put away a couple of bucks on the monthly basis. They may see bitcoin as the goose that can lay golden eggs and, when the price falls, they get panicked. I expect people who "don't afford to lose" lose the most when the price falls suddenly, because of their FOMO-buy and panic-sell actions.

I completely agree on heavily educating. But I also think that until the moment somebody understands fully good how the bitcoin investment works (and how much the price fluctuates too), until the moment one understands good enough why the price rises more than falls on the long term, the "only invest an amount you can afford to lose" is a simple starting point. Later on he can already decide better whether he should or not invest/buy and will probably no longer need our answers.

I think that it still rings true to some degree because investment is always risky so there's no way that the saying loses it's value overtime. Even if fiat gets printed, we should know that those printed notes are replacing the notes that were destroyed or unusable so even if they print, they still maintain the number of fiat although the newly printed are much bigger than the ones that are removed.

Yes, I agree Bitcoin is a lot less risky than it was a couple of years ago and with the management of fiat it is becoming more prone to inflation and supply shocks making it not ideal for storing wealth, I would however not recommend investing more than you can afford to lose at a time. The comfort of holding is being able to hold through different markets, bear or bull. However, if you hold amounts you could very easily need in the near distant future, you can not comfortable hold and would have to sell to settle life issues, and it could be at a time when the price is not very very attractive.

Investors can on their judgement decide to buy heavily into Bitcoin regardless of the general advise, but that would be a personal decision and not as a result of suggestions from others.

There are other means of hedging funds besides Bitcoin and fiat.

if not "Only invest an amount you can afford to lose"
atleast say "Only invest an amount you can afford to not need access to short term"

you only lose if you sell at a loss... due to impatience/needing to get out too soon

As of today I think you would be crazy not to have any bitcoins at all.

You just need to read the original sources (https://satoshi.nakamotoinstitute.org/) to realize how important Bitcoin is, and more importantly, how it was not created as a way to make a quick buck, which is the case these days with 99% of altcoins.

I had a look at gold, and real estate as investments, and ended up choosing Bitcoin. Not only because of it's amazing ROI, but also because of it's unique self sovereignty. No other asset has that quality.

You do need to have some kind of short term money available to you, maybe in a savings account, or index funds, etc. But for the long term I'm definitely looking to get all the sats that I can.

It's advice that works for the vast majority of people, especially if they have little money or have little financial literacy.


Logical because we are in a Bitcoin forum, but I would not reduce it only to Bitcoin, I would also include other financial assets.


I do not agree with that. In the age of the internet, what people have to do is self-educate themselves.


A lot of people with money have almost all of it invested, like Musk:

Elon Musk, short on cash, keeps borrowing more and more money even as Tesla stock surges (https://financialpost.com/personal-finance/high-net-worth/elon-musk-short-on-cash-keeps-borrowing-more-and-more-money-even-as-tesla-stock-surges)

I personally know some people who are also quite wealthy and have it all invested. The saying: "Only invest an amount you can afford to lose" makes no sense because they are well diversified and it is impossible for everything to go to zero (it is even very difficult for them to lose more than 50% of their total wealth, and even less so in a short period of time). If we include the depreciation of the Fiat in the equation, it is logical what they are doing.

Pretty much this. The former gives the impression that bitcoin is a gamble, whereas the latter implies that it's not necessarily a gamble but a volatile asset.

Sure. But since we're talking about giving actual advice here, I wouldn't just say "go Google it loool" to anyone asking me for advice.

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.

I am currently very deeply exposed to BTC, its around 75% of my networth, and I think it's a bad idea and a huge risk. To me, and probably to most people, not being poor is more important than being increasingly more rich, so taking profits and diversifying into other asset types is an objectively good decision, even if it's going to be not the most optimal decision in retrospect.

Also, newbies shouldn't invest too much because they have higher risks of losing coins to things like hacking, malware, fake wallets, trusted third parties, scams, mishandling their private keys, etc.

Whether it is bitcoin, altcoin, stocks, real estate or any form of investment, risk is associated with it. I'll give a comparison of bitcoin with the other forms of investments. Here one will find the growth and the risk out of volatility. Now I'll suggest to invest and forget it. Someday when you open the wallet you'll experience the goodness of holding/investing into bitcoin/cryptocurrencies.

In this case you doesn't want to worry about the market crash or other forms of volatility features which is termed to be the risk factors of cryptocurrencies.

This statement is really subjective. If you are in your twenties and  have a steady source of income, you may not mind to invest all your investable money into bitcoin. But if you are at your sixties, you may not want to touch bitcoin at all because of the volatility.

So it all depends on your risk taking capability and your individual thinking process. For me, I still have a sizable investment in bitcoin and I am buying at every market crash. But that may not be the case for many other people at different age group.

Fiat will always be printed and inflation will continue to remain a problem. Bitcoin is not an answer to everything.

To a certain extent yes, you should only invest what you can afford to loose, is good advice but there are so many qualifiers to that.

There are some investments that don't pay well and also don't have much of an upside however, they are secure. Take US I-Bonds, not a great investment overall, but not much risk.
Certain precious metals, once again, not much of an upside, but many of them do tend to be stable.

But once you get out of there, into BTC / crypto and other markets, it's easy to take a loss that might take years to recover. Even worse, there could have been an upside that you missed.
Think about the 2017 BTC rally, if you had gotten in say from mid Nov 2017 to end of January 2018 it would have taken you till the end of 2020 to get back the USD value of what you put in.

So in general it's good advice. But each person has their own 'risk' bucket of money and 'what you can afford to loose' never mind the amount, but in general changes from person to person.

-Dave

This is exactly what I have been telling most of the newbies and beginners (especially cousins, relatives, former classmates, etc.) that they should only shell out an amount that they can afford losing. However, most of them are afraid to invest and trade on BTC because of no guarantees or promises.

They invested to some ponzi opportunities that gives them “guarantees” or “promises” about earnings. They invested like five to six figures in Philippine peso. They didn’t just took my advice and instead going on in the wrong route. In the end, their money is completely gone because of these exit scams. They kept repeating it over and over again without learning their lesson after joining more ponzi opportunities.

Technically, this “kinda” applies to the “invest what you can afford to lose” quote. But in ponzi scams, you lose everything. As for cryptos, you won’t as you still own these assets while the value goes down due to market crash, circumstances, etc.

But this quote still applies no matter what.

I think the advice is still applicable especially to an average person who does not have anything to invest in the first place. I agree that Bitcoin became less risky observing how it takes place in the society but surely people would need such advice to avoid large amount of loss for themsleves. Not all are very knowledgeable of how things work. It's better safe than sorry.

Starting an investment doesn't have to be with a large capital, you can also start with a small capital first so that if you experience a loss, don't panic, let's just say this is not a good way. However, the benefits obtained when buying coins with small capital will not be that big when you use large capital. But it's also useless if you have large capital but the capital is not managed properly because you are too busy. Try spending some time on cryptocurrency.

Well as I’ve stated many times here, as a financial advisor who gets asked all the time “should I own bitcoin” and my answer is always the same. Do you currently have a portfolio that is on track to meet your retirement needs? Will you have extra money to invest that you can technically afford to lose? If you meet that criteria then I of course believe everyone should own a little bitcoin (or a lot).

I am actually using this more, I keep telling people to invest in fiat what they can afford to lose because fiat is dumping hard all around the world thanks to the ridiculous amount of printing that happened over the past 2 years. Bag holding fiat is the same as begging for losses.
When it comes to bitcoin I try to avoid the use of the word "invest". Bitcoin is the exit sign from the broken financial system. From sometimes corrupt but always failing financial system into decentralized financial freedom.

I’d counter that with only leave in fiat what you can afford to lose as that’s now the cold hard facts of what happens. Inflation is over 6% in a large amount of countries.

Your government are stealing from you.

I’m not saying only invest in bitcoin but you simply can not leave savings in regular fiat accounts now. Real estate, stocks, bitcoin, you have to invest in something other than low paying fiat savings accounts.

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.

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.

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.

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.

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.

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.

No, we should keep using this catchy phrase, but for the dollar!  :o :P

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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.

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..

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.

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.

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.

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.

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.

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.

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.

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?

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..

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.

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.

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?).

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

I always suggest "Only invest an amount you can afford to lose" for those who want to join in crypto investment because the risk of losing the money value will always be there and I do not think people are ready with that. People must know about this before deciding to use their money to invest in crypto. Without knowing about the price fluctuation, they can panic when they see the price jump down drastically. But unfortunately, people join in the investment because of the trend and not because they search for more info that the investment can help them make a profit.

Technically the "network" is not the same either :P
We've had a soft fork that added a new witness version and opened bitcoin up for new possibilities and increased scalability to some extent as people are now using Taproot.
The hashrate has gone up so the network is more secure. It has also spread more which means increased decentrailzation.
Same thing about number of nodes which have grown all around the world.
We have also seen tremendous growth in lightning network (overall adoption, increased number of nodes, capacity and channels).

Some phrases seem to help "hit"/guide common sense but regardless of that the important thing is to know what is going to happen; bitcoin will give you a return based on the trust of your financial possibilities not of the illusions of changing your life.

Investment is like gambling.
Some people want to invest more and earn more, but in many cases, the consequences of this idea are beyond people's affordability. When many people invest a small amount of money, they are always misled by others "be brave and try boldly." If they make money, they will be very happy and they will invest more and more. If it fails, it may require great psychological and financial affordability.

I agree but the problem I believe is not with the Bitcoin Investment now as you said but as we see nowadays heavy investment on new projects and meme coins. Investors are daring to take more risks now with their investment and some will continue to invest more than they can afford to lose even when they know that is risky they are willing to take it hopefully because of greed which I believe is more with crypto investing these days. 

While some do invest like it would gamble, investing is not like gambling.
One can properly check for himself and invest in what he think it's fit. He can choose for himself what risk he can take, he can choose a more or less reliable investment (of course, if he doesn't check this, then it would be gambling indeed). My point is that if one uses his brain when investing, he has a very chance for profit.
In gambling it usually doesn't matter much how well one uses his brain, the odds for winning are not big.
Gambling is for fun, some adrenaline and some occasional wins. Investments are for earning money.

Yes, I agree with this. besides, if they can afford to choose new or old altcoins, why would they hesitate with bitcoin. if we look at the current state, bitcoin seems to control the price of almost all types of altcoins.
Apart from that, I also think that seeing that money is being printed so quickly nowadays, I feel that we need to invest in things like this. Apart from that, I also choose to invest in real estate. well, for real estate, i use the rest of the money i saved, with i use the stated statement for crypto.

It is not something unique to crypto though,,, the adage is something applied to every single investment and in fact if you read every contract that you sign with an investment (traditional like bonds or stocks) there is even the same line of advice there.

People think this risk is only in crypto but it is in EVERY investment,,, never forget this and recall it whenever you see someone claim to guarantee profits.

You are right... I always say Invest what you can give away...it most not be little or too much, Don't put all your eggs in one basket

Reasons are if you invest too much let's say 90% in a particular investment...(Bitcoin) All the direction will be towards that investment and if there be any delay or setback, onlike what we are seeing now... The stress you or your organization will go through

You are probably right. With the fiat keeping on depreciating in value every year and bitcoin keeping on rising every year I think we have to reverse the asset here.
Instead of holding fiat and investing in bitcoin what we can afford to lose we should instead be like investing in bitcoin and holding fiat money only upto what we can afford to lose  ;D
Also, I think the quote "Only invest an amount you can afford to lose" should not be applicable to bitcoin anymore since it is becoming more valuable these days.
Altcoins are the best assets to fall under this quote though.
DCAing is the best strategy to accumulate more number of coins over a longer period of time and there's no doubt in that.

When the investment does not produce and the price is getting crushed, then they do not understand the correct investment mechanism. They only care about quick profits without knowing the process to do. Investment takes time. Investment growth will be seen in months or years. This type of long-term investment will be better if you use free money. Getting into investment also requires financial management, so when the price drops, you still have a backcup to buy at a lower price.

If we investment in Bitcoin and the market has so much volatile so we have more add bitcoin without any panic . I see most of the people like newbie have becomes to much panicking when btc down it's all temporary and biggest whale wash the money from new users. I see if anybody investment in Bitcoin they have never loose because they have don't sell any bitcoin. If they sell they have in definitely loose . Red market & bearish market has temporary after that bitcoin will definitely will go up with new all time High

I agree with you. But most people forget about that because they have greediness, especially if they see they can make a big profit from crypto, which is happening to many people. If they can remember that the risk will always be there in any investment and be careful when they put their money in the investment, they will not break that and will enjoy their profit while controlling their greediness. So the adage will always work in any investment and we need to calculate the money you will be using for the investment.

Investing the money you can afford to lose is still advisable regardless how good the investment is. However this depends on the investor's belief, we know most of us are assuming Bitcoin's price will continue to increase if you hold it for long term.

As for me, I still follow this basic rule when investing because we never know what lies ahead. Bitcoin is the future and its proven to be a profitable investment but im just being a wise not to risk the money that is meant for important things. Thus I opted to be careful despite of the good sides of holding Bitcoin.

Seeing the current economic conditions of fiat it's better to hold fiat and we have been robbing of purchasing power since long so we are losing in them also so it's better to hold btc to the possible extent you can and have better future for yourself as now the statements have changed.

Yes I believed that's the best advice we can give to people who are new in this industry because we all know crypto is very risky due to the fact it is very volatile and even OG in this industry cannot predict what will be the market be tomorrow. Always stick to fundamentals as always because it's the best we can rely on in this industry.

But that greed is really less about being crypto and more about them making money. They would act exactly the same if they were trading stocks or gold or silver,,, same way, using maximum leverage and using maximum loans if they could.

Trust me, these guys will go into Defi and NFT in the exact same way,,, not just because it is crypto but because it is promising them easy money. If something bigger and more lucrative (in their thoughts) than crypto, they'll go there.

I think this is a valid investment philosophy in any investment model.  When investing, everyone expects profits but mostly forgets about the necessary risks, seeing some people All In and bragging just to say good luck and bless them.  In fact, when applying these lessons, your psychological state is always comfortable, beneficial to health, on the contrary, under Rekt or psychological pressure, your nerves are more compressed.  Bitcoin offers opportunity but don't blindly erase your money.  I learned great lessons with bitcoin from loyalty, trust, patience and my own financial freedom and how I keep it is my choice.

I agree with you 100%. The only option that was present before bitcoin for good returns was stocks. Now let me tell you why bitcoin and other crypto is much better than stocks:

1) You can trade crypto 24*7. This means more earning opportunity and the flexibility to invest as per own time schedule.

2) If we compare the returns also bitcoin and other crypto will beat stocks by huge margin. However, one has to make sure that one does not invest his hard earned money in shit projects.

3) There are lot of other earning opportunities in case of crypto like there is staking which kind of gives fixed returns. There are people who are getting as much as 80-1005 annual returns with staking which is in addition to price growth of the coin.. Such returns are not imaginable in case of stocks.

To me I view the money I invest in crypto as "spent money." Akin to me using it to buy a burger. It's gone.
Obviously that is not the case and I hope to make positive returns on my investment. But, I go into investing with that mentality. So to me that is what "don't invest more than you can afford to lose" means. This money was earmarked for no other purpose than investing.

Maximum time i heard that, if you invest some fund in crypto then forget your investment amount, becouse you can lost your amount from investment. But as my opinion it is not correct, if i invest in good project and don’t sell my coin with low price then i can make good profit from my investment.                 

Exactly, when we invest with an amount that we think we will lose or lose, it will make us always optimistic and don't care about falling market conditions, investors who expect big profits because they invest with everything they have, so when they see a red market, they immediately sell in panic. .

While I get the basic idea around this concept, it's not always applicable. Personally, I've got a relatively decent amount of money on staking pairs through Beefy, I've allocated 2/3 of my funds, while I've got the other 1/3 lying in my wallet. I definitely cannot afford to lose such amount, while even if I reversed the numbers, my profit would be minimum.

When I used to trade, I held approximately 0.05 BTC, from which I'd only use 0.01 - 0.02 BTC at most for my trades. That doesn't mean I could afford to lose such amount, however, it was deemed safer than using all my funds.

When you do invest only on the amount that you could afford to lose then you wouldnt really care much nor get stressed out when it comes to possible market conditions since you do know into your mind that you wont really be wrekt out totally once the market goes down and thats the advantage when you do limit out yourself
when it comes to finances and investment. You should be wise on spending and managing things and wont tend to go overboard on something that
you cant bare if anything goes wrong.

Easier said than done ... that's why I am absolutely that every second person on this topic, talking about safe investments and giving advice, is lying, because he himself does not follow his own advice. Several years ago I was the same, in the context of agreeing with the obvious, but in practice I was constantly losing BTC.

And if I really had the opportunity from the future to give myself only one piece of advice, then under no circumstances would I advise myself something from the category - "diversify" or "only invest an amount you can afford to lose". "Don't jump to conclusions, especially with simple conclusions" - this is what I would say to myself,  and it is an unfinished thought that you can develop if you want to yourself, since each of us is able to understand only as much as he can understand.

Among other things, I see that this is a self-moderated thread, and I really hope that the OP will toughly moderate the gibberish that is published for the sake of a quota, then perhaps this thread will really be filled with insightful content.  :P

Bitcoin is now a stable cryptocurrency. If it loses its position and its price goes down then it has the ability to restore its position after some waiting. So short time investment or long time investment is not much risky these days as there was the uncertain condition before in the beginning. But regarding business principles, it is better
that you should not invest all of your savings or all of your money at a time but save something for other necessities of life.

At least, if they can control their greediness, that thing will not happen and they will have a chance to make money. Whether they trade in crypto or stocks or gold or silver, controlling the greediness will be necessary and the important thing if you want to make a profit. Otherwise, you will only lose your money and once you lose the money, it will not be easy to recover and it could need long before you can recover the money.

@Leea1334 Yes, The risk is in all types of investments and one should invest only the amount he can afford to lose. In the case of crypto there are many people who have not yet accepted crypto as a trading asset. And maybe because of this lack of acceptance they find crypto more risky.

bitcoin is not a stable crypto, in fact its fluctuation is very high. other than that, there is no guarantee that the price will go back up once it goes down, but nowadays people's need for bitcoins is increasing, so the price is always going higher. Well, I also hope that this can continue to happen.

other than that, I agree with this. it is important to set aside some for daily needs. it would be better if you use 20% - 30% of your income for investment elsewhere, and the rest you manage for real life.

Yes,,, that was my whole point. This greed thing has nothing to do with "because it is crypto",,, take all these greedy guys and put them in a room with 10 toys and they will choose the ones that supposedly promise them the most profit.

So I think people need to stop associating crypto trading with high risk speculators as these guys go everywhere, and they don't even use crypto.


You cannot be not accepting crypto as a trading asset and yet be buying and selling crypto? And crypto IS more risky,,, whether you accept it or not :)

agree, you can find money in any place, but its hard to get bitcoin if you are not smart enough.
the problem is people still need money, they turn bitcoin into money. better if people turn it into gold, and doesnt matter if to money as long as really important. but, they turn to money to fill their desire, buy this, and those. like daily needed increase with how much you have salary

Een so, trust me no one wants to invest any for loss regardless of the small amount so, for me, it is about patience and picking the right project to invest in. If you know the project you invested in is good with conviction and understanding of the market, then holding wouldn't be a problem been if you invested a medium to a high amount of money. 

This is really important and a healthy counsel for anyone investing in bitcoin especially when it's one's first time or still testing the waters, high stakes actually creates high hopes and expectations and when things go south on that particular thing it creates negativity which might be unhealthy in some areas of our life

I can't understand that how you said that Bitcoin is Stable currency as current market price, i see that Daily Bitcoin price is $2-5k Up down. Today bitcoin's ATH was $48700 and now btc is $46600, actually bitcoin is unstable coin.   

I think this kind of mindset stems for the inflationary nature of BTC being totalled to a limited number supply of 21 million. The more BTCs are mined everyday, the more it gets valuable as it is non-renewable form of asset, unlike existing assets nowadays.

HODLing is still the viable option. If there is an opportunity to purchase more BTCs, such advice should always apply- only invest the amount that you are willing to lose. Consider everything that you invested as money that is good as gone until you withdraw it.

Of course it's a common opinion that we hear too often, but not everyone pays attention to it just out of passion. I mean greed, a lot of people are too greedy to think that they can get rich overnight where their inability to know something will only cost them. Volatility being something that will teach them about how to use money in investing, of course they need to know that investing money they can afford to lose is the best way to prevent financial and emotional losses.

Investing money they can afford to lose is the best advice ever, this is useful for everyone but we are really not responsible for their inability to understand this investment because in the case of any investment then we are the main person in charge. This is not about being stingy, but it is a good position to invest in. It is clear that any advice that is aimed at investment then I think they should consider it as non-financial advice.

As the OP already said in the first post "Only invest an amount you can afford to lose" is one of the most common words you will ever hear from people whenever they are trying to give you a piece of advice. No matter in what market you are investing this rule never changes, however, there are some people and they became rich from going all into bitcoin or other assets but the whole point about these people is you usually hear only about the winners while you will not hear about the people you lost everything because of no having any proper plan if you ask me I totally stick into this plan and even if inflation rises as hell and bitcoin riches 1M I still won't change my investment plan regarding bitcoin or any other asset.

It is all a mind game, and knowing which projects you invest helps a lot. It takes a lot of effort but knowing that you invested in a project that did several x from its price leave one with a massive room for market down.

One example of this for instance is the recent project launched last week, MetaVPad (https://www.dextools.io/app/bsc/pair-explorer/0x2b274ee689e942e4622dc088074573615442be18). It's running on a hot trending theme of the Metaverse and it did a crazy return. This is the type of investment you can be sure to be +ve even during market corrections

This is why most of the time i would always look after about the potential projects because you do know the probability of seeing shorterm gains which is
much more preferable rather than waiting up for long game and you wont be sure if it would really be getting some value. We know that hype isnt good but
getting recognition is something that signifies that the project does really have that potential because big investors arent that dumb on pouring
up to something which isnt good.

Only We can't espect  profit from crypto trading, Profit and loss both is a part of trading, and it is not correct that trading means risk, just need to follow market and buy good coin. So i not agree with this opinion that buy an amount that you can afford to loss.           

Agree, this is exactly what should be taken seriously when investing in crypto. However, human greed always goes beyond thinking or feeling. Some people still don't understand this and why they always lose because they spend most of their money just for lottery purposes and it's always "when moon" Lol
The time requirement is too high to achieve is to receive Rekt. They always ignore being educated by everyone, some of whom are emotionally invested and willing to spend everything in pursuit of a value that is in fact an unsustainable hype.

That isn't true, I don't think it's as yet enough for anyone to call Bitcoin a stable crypto, it is still very much volatile, and the price can plunge very quickly, the only good thing about all of that is Bitcoin is a long term project, thus even if it plunges now, it'll still rise back up again after some time. But that doesn't take away its risk concerns, but there are a lot of ways to control it, that's the reason why as a matter of necessity one has to garner enough knowledge and do a thorough research about the network, even when you're about to invest, you need to know about the history/price movements so you do not panic unnecessarily, I'm in support of people investing as much as they want to, so long as they are knowledgeable about the network, and are still very wise to keep some funds left for the day to day handling of basic needs.

Since when is Bitcoin a stable cryptocurrency? It never was, and it'll never be. It's been extremely volatile in the past year, reaching multiple all-time high records within 12 months, and then going through correction shortly after. I get your point that you probably mean that Bitcoin is a relatively safe coin to invest, and so do I believe. Dips do not panic me and I am not really bothered about price fluctuations.

When we are talking about bitcoin then we must always keep it in mind that it's price, it's prediction related to price, it's dumps are always unpredictable. No one can say anything about it.
If one is having in mind to double it's assets in a single night then it's not possible even thinking so is really unrealistic because nothing happens overnight. It needs struggle of nights to do it .
So invest in cryptocurrency an amount which you can handle to lose if you are planning to invest all of your money in it then after loss you will be having nothing and even you would not be able to bear it.

It has been a word that I keep on hearing and reading ever since I started investment but to be honest,
Those words are too hard to follow as we humans are too greedy and expect that we would accumulated more profit by risking bigger amount.
And there are times that I am thankful that I ignored those words but I know that it wouldn't always be like it and we have to know when and where to ignore it,
Because not every investment would work out.

Invest in amount you can afford to lose is one of the quality of a good trader . This is what every beginner must adapt as a trader, this will help beginners in managing there loses.
It wouldn't make any sense if one is trading with what can't be afford to lose is as if the person is using all the sources of income to trade which is not good.

More or less all investments are risky , no investment is risk free but we should learn to manage this risk to make our investment profitable. Risk management is very important tool in finance which we learn by experience and through training programs. Investment in crypto assets is comparatively  more risky in the short term but in the long term it is highly profitable if you invest in Top 10 crypto currencies including Bitcoin and history of Bitcoin has proved this fact again and again.

You are right, although bitcoin always fluctuates but in the end bitcoin always increases in price from year to year, so when investing in bitcoin it will not be as risky as investing in altcoins. I think "Only invest what you can afford to lose" is more appropriate when it comes to altcoin investing and trading.

That's the problem with most of us 'greed'. Most of us see Crypto as a get rich quick scheme. They want to make it within the shortest time possible, hence they invest all they have and end up getting there fingers burnt.
The ultimate rule still remains, 'invest what you can afford to lose' because trust me, the market is highly volatile, it can swing sideways.

I'm now in that situation. Currently dealing with the risky investment. The amount I put is not the money I can't afford to lose that's why as much as possible, I'm keeping my hands active at it. Putting only an amount I can afford to lose does mean that I'm willing to lose that amount. I don't like that investment mindset as it's just treating my investment as gambling which should not. Every piece of money I put on crypto should be treated seriously.

Only invest what you can afford to lose is most generally use for newbies whom you are just bringing to the market and for people on social media when giving a general advise but the OGs now understand this market that bitcoin is bigger than what it seems now regardless of price correction. I have coins I have locked up in my hardware wallet, let it be there from now till 5years.

Not just newbies, this could apply even to people like Warren Buffett, it's just a matter of scale that we never think that they're going to lose any money. It's still a pretty solid advice in my opinion, it's not like it doesn't lead people to harm's way.

^ It should be the amount that can afford ready to lose, no one who will like an investment that always loses. Just take it seriously and hope that your investment will gain a lot of profit. I am not using this line, no one will put their money for nothing because of losses. I think the best is to invest the amount that you can afford to spend. Investing is not wasting money, nor gambling it which is very risky, I invested in crypto because I want to make a profit even though there is less risk.

That's a good strategy. However, the key to HODL is knowing when to SODL.  ;)

Since you never know what the market will do, my strategy is never to HODL everything. I'm holding a portion of my investment and selling another portion, when the price is right, so I can hedge my investment. It reduces the risk of losing everything.

Let's be honest: how many people apply this rule?

Note: this is not to encourage anyone

since I know bitcoin, I've always been selling my stuff in the real world to buy bitcoin, I've sold my cell, I've sold my video card, I've sold my entire computer, I've sold a lot (I really miss) to buy bitcoin and I don't regret these choices

Well, the quoted thread above "Only invest an amount that you can afford to lose" is already an old but timely and constant reminder to every trader and investor, but I am also wondering how many people, how many investors, and traders are actually applying this rule because in my own experience sometimes I neglect this rule. But let's always practice proper analyzing on how we were going to allot our money before it will dissipate and not going to regret the thing that has been lost or happened.

Investing in Bitcoin still remains very risky business for anyone to do. Yes we do know that the government are now printing a lot of Fiat, but that doesn’t really change anything at all. So, if you are investing in Bitcoin you still have to be very careful and take calculated risks. So far you can see that the price has dropped, we’re not yet sure that we are going to be seeing an increase before the year runs out.

Though we have seen a lot of predictions coming from analysts who believe that the price would go on before the month of December runs out, or maybe early January. The last time we had a major bull market, which was the last time that Bitcoin was halved before now, we also saw the price increase around December , so I believe that is why a lot of people are saying this now. But, I’m always positive.

I always start my preaching about the probability of bitcoins price to increase and to decrease in unexpected ways such as the volatility and some hacking event that will lead the price to decrease just like what happened in 2018 where a Japanese exchange got hacked and the price of BTC has suddenly decrease because of that, to free myself from any blame from the people I invited to invest with the money that they spent on the leisure of their senseless hobbies. I only invited a few people and some of them are still doing good until now on trading and some other crypto-related stuff to avoid some kind of misunderstanding when the crypto market is not doing well.

dare to take risks and have sufficient knowledge is not wrong in carrying out the rules. but not everyone can do it, even at the beginning we may be said to be crazy, for selling what we have to buy bitcoin. but with proof, then the person who said he was crazy can be silent, and praise us even though in his heart

this word is very motivating for me, where in investing not only able but we must be able to lose
because the investment will not always be straight, there must be a gap we will lose and experience the loss of the assets we have.
crypto = gambling in my opinion where Some people want to invest more and earn more, but only have minimal capital and are often misled by others but in crypto we must be brave and try so that we know what will happen to make money, If it fails, it may require psychological doctor if you invest a large amount

There is another famous saying that "In gambling a winner is the one who knows when to stop". I do agree that we should not get inspired with success stories to extent that we invest what we cant afford to lose. I have seen stories where people investing in stocks and real estate by taking loans and becoming bankrupt. Be careful.

This thread i considered it as a motivational thread for any beginner for cryptocurrency trading, because op is right enough, i reason go back when for investment, what of you invest all the money you have and finally you lose all, the next thing that is close to the person that time is death, the way am seeing it, somebody suppose to invest and reserve

This is one of the best sayings that can exist, not only for investment, that saying applies to gambling, when we are trading and have large capital, it is always good to do adequate risk management for our economy, that is, , for me of 100% I only risk losing 20% of it, and that 20% is what I put to trade and I can divide it in the way I want, managing that 20% in at least 3 trades, within which I do not allow myself to put a stop loss that is above 10%, that is how I manage the money and what I am allowed to lose.

Short term investment means have risk, it is not true, Short term means maybe one to six week, short term investment will profitable if someone invest on News base coin, becouse every time alt coin is pump for their news.       

for newbies, i think that statement are very good way to invite them to join in bitcoin, time by time they will get the return and the benefit by investing in bitcoin. and i think it will change their opinions about bitcoin. so i think that statement can be use in some aspect

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.

a great way to invest, by using money that we can afford to lose so that when we invest we can easily hold it, for example a young person in my country who buys cryptocurrency, until he forgets to have invested, and so remember he is now a billionaire , therefore he seems to have no burden on the high volatility of the market

I don’t know that How many people Apply this rule for their trading or investment, but before my every investment i believe this topic, becouse i know that everything is possible in Market, and also i believe that if i invest in Good coin then it will profitable for my investment.  

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Exactly, The maximum people think that they can earn multiple profit from his investment after his investment. For Example Someone buy $100 worth a coin      after his buying if his coin is 20% pump then he think that it is not enough for me, he want more, it is Greed and greed means loss.               

It depends. I think the most disturbing numbers are the once, we'll never (fully) see: Like Eurodollar Network stuff. By now I've seen and read anything between "hyperinflation is now", "stagflation is now", "deflation is now". The one thing I guess we can all agree on is that the current global financial system is a. fucked up and b. highly complex.

... That given: Who knows what BTC will do. In theory BTC is more or less the only fix for that mess we got into with fiat, but if only a few million (even that seems pretty cool tho) use it - we'll fail eventually. Its basically a financial war and it looks extremely well for us crazy internet money guys. I myself invested never more than I could afford to lose for 2 Halvings, but since Covid hit the market my FOMO kicked in. I guess "Only invest an amount you can afford to lose" is a good Phrase for risk averse people or starters.

Lets not forget that most people think not having a support hotline is a bad idea. I myself have to grow on that thought still after all these years :D Before 2017 BTC seemed like a small hobby project going off the rails, now 4 years later the first mayor Banks and some small Countys are using it.

We're getting somewhere. Even pretty fast, if you ask me... but BTC will be a "risky Investment" for the most of the people for a looooong time. At least I know now: "There is no top, Neo."

PS.: Don't trade your hard earned BTC for Fiat, that's ridiculous  8)

Everyone know this that they should only invest that money which they can afford to lose but in practiice only few people follow this practice.  
People want to invest more money because they think that if they invest more they could make more profits. They forget the probability of the loss which can happen too.

I never Get tired of trying my Very best in educating those people around me specially those who starts learning about crypto and not just Bitcoin.

I remember few days ago a former Classmate in college drop by in my Inbox and shows His interest about crypto(NFT specifically) and I open my door in all questions he wanted to be answered.

But of course before the discussion ends , I offer Him to invest in Bitcoin more than In altcoin as I know the safer he can be in this coin than in the popularizing NFT now.

Thank you for such thread because this is worth spreading not only for Newbies but also to those investors that still has a Greedy attitude .

Holding is for patient investors. Bitcoin keeps playing with investors emotions regularly and each time it tries to making a move up it keeps going dip. But has fiat gets printed more often it's best to hold and holding implies a money you might not necessary have a need for as the market would definitely keep playing with emotions until it makes it new ATH

That's because they are greedy. People become crazy to put all their money in crypto after they succeed to take profits at the first attempt. But then, they regret it since there is a huge correction after a big pump. It happens in most altcoins, especially those meme coins. Doge and SHIB ever skyrocketed, people think investing money in these coins is safe enough with support from Elon Musk. But finally, they lost their money after the hype of these coins are over. From these phenomena, we must learn that no coins safe enough to invest with all our money.

Only investing the amount you can afford to lose is the best word for any investment including bitcoin and other cryptocurrencies.
but sometimes people don't do that and it's very clear that they don't have the knowledge or learn how to invest properly and how to avoid risk.
and all they think about is making big profits and sacrificing the money they need to invest without thinking about the losses that will occur.

Emotion is very dangerous for Trader and for investors, if someone is Emotional for his investment, if he think that my buying price was $10 and now price has $9 how can i do, i lost my money, then they sell their coin with low price, it is actually panic sell and for every investors Patient must Need.       

Well, if you can't be patient and is always affected everytime there is dips happening, then better stay out from crypto. Otherwise, you will only regret why you had invested it in the first place because you only end up panic selling and lose a huge amount.

However, being patient in crypto brings a lot of advantages. Meaning, if you can simply hodl for long, then the bigger profits await for you. I still believe investing in an amount you can afford to lose is definitely helpful as it guide you to diversify your investments so you won't be losing in just a single time.

That is mostly the initial mindset of people who only came to crypto for a quick rich purpose hoping once they put up a bigger amount, it will give them huge returns  instantly. But crypto is not like that. You need to take the risk but make sure you know how to manage the risk. Invest only on an amount you can afford to lose as there is no assurance if you will win or lose in the next phase. And if you can't bear making losses in crypto, then you are not meant to stay in crypto for long.

They would really be learning off things once they had able to experience the reality on dealing with crypto market and this is something which cant really be easily handled speaking of volatility.
You would really need to be smart for you to sustain on this market and only invest on the amount which you could afford to lose. Dont invest loan money or something you had borrowed.
Dont take risk on investing money out of those money you had attained on selling your assets.Its never been a good thing to do.
Even you do start up small then better to gradually able to grow it.

These incidents are becoming more and more popular, with the founding of the Binance Smart Chain, where everyone can simply create a coin, with little effort. Especially after the hype with Doge and Shiba, the cryptocurrency scene was flooded with newbies that thought it's a get rich quick scheme, only to be proved wrong, shortly after. I even have acquaintances and friends of mine ask for advice, after purchasing some crap coins no one knows about, without any kind of research before proceeding.

It doesn't mean that you are investing for lost that  you can trade amount you can afford to lose. If you wanna trade you need to learn trading strategies and get all information about your coin which you want to buy. Then you can invest and earn then there were some chances to lose momey.

I think the advice is still applicable especially to an average person who does not have anything to invest in the first place. I agree that Bitcoin became less risky observing how it takes place in the society but surely people would need such advice to avoid large amount of loss for themsleves. Not all are very knowledgeable of how things work. It's better safe than sorry.

Those sitting outside crypto world think that it's a shortcut of getting huge money in short interval of time but it proves to be wrong when they jump with lots of cash and becomes a victim of losing money in short duration of time. You are right people are missing  key principle of investing which is DYOR. The FOMO has made many to buy coins when they are at there ATH.

Actually, "Research" will not help you When someone popular and tech skilled like Elon Musk spreads out the positive news for any coin it is really hard to prevent someone to invest in that coin.
People who don't have enough skill in crypto and who have little skill blindly follow such influencers. Elon Musk is a self-declared influencer all over the world.
People follow him cause he is knowledgeable in tech but you know he misuses his power and misguided his followers.
yes, invest your money which you can afford to lose but choose the right project, don't jump here and there with your free money. cause when you lose your money, your negative thought will impact all over the market.

That's true, doing your own research isn't always lucrative, it's often dependent on many factors, such as people of influence, Elon Musk mostly mentioned Dogecoin, which led to a huge rally, with it reaching $0.50/each, if I'm not mistaken. Flocks of people run to buy Dogecoin, and let's just say that a large number of them lost their money.

Personally, I think it should  don't invest what you can't afford to HODL till it moons.  I can afford to HODL quite a bit for quite a while. To buttress my point,  the fiat is a long term loser. The trick is not to get shaken out of a market with long term up potential. So don't invest capital that you need to liquidate short term. Cryptos are a long term proposition. At least for now. Own quality and hold on.

This is the best thing I can ever tell a new trader. Always take risks on the money you can afford to lose. The market is unpredictable by nature, no matter how good your analysis has been, you will still fail at times. But these failures should not dishearten you. Instead, they should be seen as the stepping stones that make you learn. Try not to let your emotions come your way of decision making if you really see a future in cryptos.

Nowadays investment is never ever discarded. Like any other investment bitcoin is risk involved maybe little bit more than other options. But don't completely avoid this and highly recommend that you keep 1 to 10 percentage allocation in it. Because in my instinct bitcoin or crypto currencies are the future currency.

yeah you are right s.r! only invest money which you have want to loose them. trading is not easy way but people seems like that is very easy printing money like huge investment. that is true but you have make strategy to invest money with DCA OR Daily basis. many people are panic when market going down so that is wrong way express you,r panicing and they ready to sell money in loose. so that is why you have to make a strong strategy to invest them

"Only invest an amount you can afford to lose." Yea, that's the first lesson I've learned during my entire crypto career. It's easier said than done. Still trying to stay calm when the market is volatile.
Investment is necessarily risky, I consider it a test for view sight.

That shouldn't have mattered whether the Investors bought at ATH but I believe the problem people keep having is still not having or believing in Bitcoin even if there are investing in it. Imagine those how bought at the 2017 ATH but believe and were able to HODL to 2021 ATH, we all know what the result is. So the Issue is not even Investing what you can afford to lose cos no one wants to lose money even if you believe you can afford it but once they understand that there will be dips and recovery again, then you are good to go. 

I invested huge amount of money on bitcoin, hoping that before the end of December 2021 i will achieve good income from the investment. I bought much bitcoin in the month of September last year 2021 when the price was low to invest hoping when the price increase higher i will have much money to achieved to celebrate Christmas and new year. I have learnt from my mistakes by investing huge amount of money on bitcoin that caused me to loose so much income during the month of December which I will never  predict that bitcoin price will increase before the end of December.
This new year, I will invest amount i can afford to lose in the future.

This is where it is important for us to learn financial management, don't let greed destroy us. When we do something means we are ready to take the risk, not only in investment but in all the work we do. Moreover, this is talking about nominal money, of course a little more sensitive.
In investing, we must not only pay attention to the advantages, but also the disadvantages are no less important. So we have to do an analysis first.

And you should, and we have to embrace the volatility of the market as we never have the choice. Mostly, people have been emotional when seeing the market price move in sideways. They started to make dumb speculation and a reason for them to start panicking and sell their crypto at loss.

Risk is not the thing we have to worry about but being too emotional is somewhat needed to change. I know that many people are willing to invest huge amounts into crypto but the problem is that they can't afford to lose any as they always thing about profit.

And that is the reason why people are encouraged to invest the amount of money they can afford to lose. I think this is one of the best risk management I've ever known although most people have their own strategy. Volatility becomes something that can't be lost from trading and investing, it will be around forever even if it is a stablecoin. So the risks of investing and trading should be considered before one starts placing capital to buy assets.

Although we can make profit from trading and investing, but if they want to earn consistently then I think it is the most difficult thing. Nobody knows how the price will be in the next 1 hour, buying means they are ready to take risks.

That right there my friend is PURE GREED, because why would someone invest all the money he/she have just because of the shiny term called profits. Folks let's not forget that every investment we make is also a gamble we take because it's not guaranteed that it will go exactly how we envisioned it as every investment has its risks, and if there's no risk then it's not business after all.
While the advice "ONLY INVEST ON WHAT YOU CAN AFFORD TO LOSE" may seem so common but in todays world, that advice alone isn't enough as the OP said that money is printed like a toilet papers already so I recommend to invest as much as possible but don't exceed to your limitations and be knowledgeable enough to avoid losses along the road.

They suppose not to be here and even to talk about investing in crypto if worries and uncertainty live inside them. And besides, investing in the stock market is still risky but they can afford to do it which I believe they can do it here. But yes, that can be a different story as we know the volatility of the market could affect our emotions and this will be the reason for our losses that many people become guilty of.

That if they can't afford to take the risk, they'll better not to try either. Maybe saving their fiat money is the thing they only know, not investing.

I wonder what would happen if they did a survey on how many people invest in cryptocurrencies and follow that advice? probably the number of people who have already forgotten this advice must be more than 90% of all bitcoin investors, I personally don't even follow this advice I confess that I just buy and don't think much before buying

Honestly, this is still what I keep until right now, I always use money that I will not use for daily needs or other needs, I mean maybe free money to invest. Additionally, I am also always investing money only in the amount that I can afford.
Although that kind of finance and other fiat problems may happen, I am still not ready yet if I should lose money more than I can afford. So, investing wisely is better for me. AT least, I have enough investment but without over risking my money and my life.
But, I know that everyone also has different opinions and considerations. As long as you can afford it and are ready for whatever will happen with the investment, it may not be a matter.

very good for you. To be honest, I do that sometimes too. however, the advice is shown to those who are new to the crypto world or, more generally, the investment world. Many novice investors think that it is very easy to multiply money through the crypto investment route. Therefore, sometimes they do not think about the risks that could occur. they sometimes go all in, or pick 1 coin to choose from, and put all the assets in. well, many of them failed. then they make a statement if this is a scam. Therefore, many people advise to only invest in the amount you are prepared to lose

because their minds are very naive and always think that here is a place of success. Even though this is true, of course it cannot be justified either.
knowledge is everything when a person is on a path and follows it but has no knowledge of it then it is certain that sooner or later he will be destroyed.
Likewise in crypto. when random people enter and without knowledge, they only buy and sell, even though it will work, but it's just waiting for time to be destroyed

For me, I think that part of Investing funds that I am not in need of is a better way to avoid panic. Even when the market goes down, you are really not in need of the funds so you can wait it out but for those investing the only little amount they have hoping to make a quick profit, then I see it the other way round, panic over every little dip because they are afraid to lose that investment. So you are more relaxed investing your free funds IMO.

Although there is currently a lot of speculation surrounding Bitcoin and its many offering, however Bitcoin is a volatile asset. Despite that most crypto investors have an interest in bitcoin. But it can be a bumpy ride and we can see the graph is going up and down like we've to see in the past.
The greedy nature of investors can also affect the price of Bitcoin. For an example, the price of bitcoin began to increase after a long time of no meaningful movement. This will cause investors to become greedy and buy more bitcoins in the hope that the price will rise even higher.

I think the advice is still applicable especially to an average person who does not have anything to invest in the first place. I agree that Bitcoin became less risky observing how it takes place in the society but surely people would need such advice to avoid large amount of loss for themsleves. Not all are very knowledgeable of how things work. It's better safe than sorry.

I agree with you, investing in Bitcoin is not a bad thing in fact it will be very profitable if we can manage it well. Even though it fluctuates, the risk ratio when you invest in fiat is almost the same. Bitcoin gives us the freedom to manage it. When the market goes down continuously many people panic, even though this can be a profit opportunity to reap a lot of profits when the market stabilizes. Always take a positive point in the steps you choose. If there is a failure and you experience a loss, take it as a lesson and don't repeat the same mistakes.

One of the things we tend to forget is the risk involved in taking a bitcoin investment, once there's a proper orientation on how it should be done, then chances of running a loss or being scammed will be minimal, no any outstanding business or investment that has no past records of lost but when the amount loss is the total capital on a failed business or investment then it hard to rise back and the main reason behind such must be identified in other to avoid reoccurrence.

I think that advice still applies, and applies to any kind of investing, not just Bitcoin, especially if the investing is done by a newbie with little understanding of the market they are investing in. It's better to be safe than sorry, in my opinion.

Yeah definitely we can invest as much as we can, and as much as we want, however it is a constant reminder to of course put only the amount that we can afford to lose. Actually, this is not just advisable in crypto space but also in any types of investments that we are aiming to join with. And talking about the volatility of cryptocurrency it is not new to us I mean when you're opting to join the crypto space we need to be aware already the volatility of this platform, so yeah be just make sure to only invest what you can afford to lose.

You seem not to understand the OP point because he was talking about Bitcoin investment and the main advice giving investors is to only invest the amount they can afford to lose.
Of which the statement seems not to be valid lately because Bitcoin is safe haven than fiat currency. After all, enormous fiat will be printed this year and the debt rate is increasing.

We cant guarantee that bitcoin is totally a safe haven, thats why it is still advisable to put only the amount that you can afford to lose. Yes, we know that bitcoin is profitable. It is good to use as an investment but lets consider that bitcoin is still risky.Anyway this is just my opinion.

Investing the amount you know you can loose is a good idea because tend to live in shock for a long time after the loss and it's also nice when you get paid as an investor from IRS😁 as they are paid in USDT when they hold $IRS instead of knocking on your door collecting taxes

Yes, you are right, in BTC it is the safest investment in the world, there are no losses and there are not even doubts about what they do, however there are people who enter the market and buy BTC and believe that from that moment it will not come to double or something like that, and those who think that if you buy BTC today to get rich tomorrow they are very wrong, this thought is held by people or the majority who invest in altcoins, and if they can have that conviction, but they what makes them lose is that they don't like to wait, nor do hodl, I think that the sense of the investor fails them a lot.

Thats true, regardless how good the investment is (in general, not only Bitcoin) the basic rule should be applied. However it depends actually for each investors because if you educate yourself first and aware of the risk then its up to you whether you'll follow this specific rule when investing or follow your gut.

I think for investors who already know the history of Bitcoin and experience the ups and down of the market, taking risk to invest on Bitcoin is much wiser than saving fiat without gaining anything.

It's a great advise you anyone a crypto trader. " Only invest an amount you can afford to lose" This means that don't invest huge money in a single coin. If you did not know coin then just invest a small amount in it. If this coin team runs away. So, you easily afford this loss. There are lot of coins in market that only come in market to collect funds and then they run away. So, please be careful about this. Just invest small amount in a project if you liked the project. Crypto market is ver big and that has thousand of altcoins.

I also thought of such a thing. maybe a good strategy is to insert a few percent of the salary or income that we have as savings with a note that the money does not matter reducing the amount, because we do not know when the price of bitcoin dumps, or pumps. well, we're just waiting for the moment for that. however, this is also just my opinion if you want to have a large amount of bitcoin but with a movement that does not reduce significant funds.

Honestly, this is one of the best advice I've ever received in terms of cryptocurrency investment, because when I sat down and thought about it, I realized it's a lot like gambling, but with a few differences: in cryptocurrency trading, if you don't sell, you're not a complete loser, whereas in gambling, if your predictions are wrong, you lose everything. So, in my opinion, it is still a good idea to invest the amount that one cannot afford to lose, in order to keep focused even if the market is down and wait for the proper time, rather than panic and sell at a loss.

Someone said before that bitcoin as a safe haven but I do not know if what are their basis to say that btc was really a safe heaven because in my opinion btc is way to risky to consider as one due to its volatile nature which the price goes up and down or maybe they think btc was a safe haven because it is immune to inflation and the money that they put on btc wont get devalued overtime (disregard the fluctuations). 

For them, it is better if they can put much money on btc than to put it in banks because it will only get eaten up but to us we are just following the famous rule in investing which was to invest only what we can afford to lose.

This risky thing is usually done by beginners who want to invest in crypto but don't know what to do and choose to enter without thinking about price fluctuations. Even the money they use is money they still need. Of course, when they enter at high prices and then fall, there will be panic and eventually cut losses. It will cause losses and just waste their money. need to research before entering and use free money.

Although many people believe that bitcoin is not risky and is a good investment option, it is important to only invest an amount that you can be fine with if lost because bitcoin is still not legalised and has a good chance of going down.

basically the capital used to invest would be better to use free money. this will support our psychological stability. by using free money, sometimes we forget to have made an investment, and finally find luck when prices have gone up high. different from beginners who use money for their daily needs, where they always monitor the market all the time so that it affects psychologically

^ If the 5% is the amount that you can afford, that good enough.
This advice "Only invest an amount you can afford to lose" is something that makes me shudder whenever I hear it.
Why? Because it is really not good advice for me. Of course,  it is important to remember that all investments involve risks, but should you just put money into something you're willing to lose? Please, please, please. The same as saying "don't put money into it or do not invest!". I don't want to risk losing the money I have put in. Taking measured risks is something I am willing to do.

That is why we should think very carefully and invest wisely. As our money can just lose quickly if we are not doing well. Even though we can afford to lose such an amount (5%), it doesn't mean that we are just careless. Of course, we take extra precautions and do the right thing like going to choose the best and most promising project in order to save us from losing.

We shouldn't just follow what people said, It was also a need for us to analyze and know our capabilities. As we know that crypto investment is risky, the more we have to be careful.

I believe that as long as we manage the funds correctly, we can win, that is, if we have a specific capital, it is best to have a percentage of that balance for investment, otherwise, another percentage to do something commercial that is 100% willing to be willing to lose 20% of what you want to diversify, and the other balance could be thought of stocks, gold or real estate, which is not a bad idea, the idea that it's all about being able to diversify and being willing to lose decreasing substantially the possibility of being lost.

Since we are in the bearish market, it will be better to invest an amount you can afford to lose because many investors are using this opportunity to invest a huge amount of money on bitcoin. Bitcoin price just reduced to $41k for any investors  to buy bitcoin and hold for the market price to go higher to make profit.
 
Many investors will not allow what happened last year 2021 to repeat itself again by investing all the money on bitcoin hoping that the price will hit $100k before December that made many investors to look uncomfortable during the Christmas and new year celebration. Now that the price has dropped in the exchange market, many investors will invest wisely by invest little to watch the market very well before the end of April not to fall victim in losses.

There is something that I have learned, and I learned that in a book called "The little book that still beats the market" there they say that you should choose the action to invest very well, because in the long term it can make you a millionaire, and also in some books of Warren Buffet, he always studied many the stocks in which he was going to invest, in fact it took a long time to determine which was the best stock, and when he determined it he bought and waited for 8 to 10 years and he was already rich, now do the same in the Crypto market, it is known that the action in this case in BTC, so if we wait 8 to 10 years, we will be very, very rich too, considering that the btc accumulation stage lasts 3 to 4 years about.

I am absolutely sure that many of us invest in cryptocurrency much more than we can afford to lose and make a decent profit in this regard. It's all about what coins and tokens we invest in and whether such a risk is reasonable. If we want to have more profit, we must take reasonable risks. The few percent of our savings that we can afford to lose does nothing for our profit. We know that the more we invest, the more profit we can get. You have to choose whether to take risks or not.

this is the basic principle in investing. we don't know what our future investment in crypto will be. no matter how deep you research, the risk is still there. this restricts us from investing only in money that will not affect our lives when the money is gone. However, many people make the mistake of investing, which is to take 100% of the risk. invest by borrowing, or even using all its assets. and when the investment does not go well, they are depressed, stressed, many even hate what they invest. However, this is a basic principle for you to learn that investments have high returns, but also have the same potential risk.

This is how any investment should be done.Only invest an amount that you can afford to lose.Which means before placing a trade or investment,think about how much money you're willing to give.Because trading/investing can be risky if you dont have enough knowledge.Also,you cant even predict what will be the outcome of your investment..Thats why it is crucial to start with something you can afford to lose. Dont be so greedy, because greed will leads you to poor money management.

If you can start investing with a huge capital, the result will most likely a bigger profits. But its not all the time that you will gain profits, as investing may also lead into losses. This is the reason why we should always invest on the amount we can afford to lose, so that if we lose, we will never end up in a mess having an empty pocket. Invest first on a small basis and when you're already making good returns from it, slowly increase your capital to come up with a bigger profits too.

Invest on some amount which you are capable on doing so and not to tend to go all in because its never been recommendable on doing so and only invest on the amount which you could afford to lose or something that

wont totally wrekt you out if ever the market would go against you because not every investment would really turn out to be positive which it is really that important to be mindful about on risks so that you wouldnt really

get surprised whenever you do see sudden conditions.Invest on what you can afford to lose and diversify as much as you can.

Well, this is the very basic rule when making an investment or trading.If you have money that has not any use for you then can invest the money.Before making an investment or trading make sure that you understand what is it all about. It is not how much we can earn but it is about how much we are willing to lose in the market.

You are not investing for loose your money you are investing for earn money and if you want to earn then you have to make research and then invest any project but if you wanna loose money then invest without any research of project.

So bad, some people usually gets into Crypto without having any background knowledge on how it actually works. Which often leads to them losing huge amount of money. Is very necessary one probably conduct enough research on cryptocurrency before getting involved in it. "Invest what you can afford to lose" is an simple rule in Crypto Investment. Because we all know how coins behave funny sometimes, and also there is no way you can avoid losses especially in daily trading.

Well said , war is going on and infliation is heading towards it's way. Some of my friends do investing on crypto without doing any anlysis , they think if they invets now it will be profitable anyway. after facing fund loss they get realized my advice .
If you talking about fiat money , yeah it's now increasing day by day . Just think about it if we need to go shopping with a luggage and return from shoping with a shopping bag.
It's horrible man , but it can be reality though money is just printing like a shit.

Inflation makes fiat valueless and worth little but what then is the way out of people not holding fiat? Is that even possible to do?


Nobody will plan to loose money from the beginning before investing, otherwise he will not invest there. Research is good and it helps to alert people from investing in nonsense projects but it does not mean it can prevent all scams from happening. Sometimes scams happen because they are programmed to happen and must happen.

As long you arent dealing with futures or leverage then you would really be always having that chance of recovery since you could just simply hold and wait for recovery compared into those people who

do make out some panic sell/cut losses or simply being liquidated by the market which you dont really have the chance for any possible recovery or something like that.Speaking with investment funds

then once you do step your foot into this market then always consider out on using the amounts which you could afford to lose.Fund management is really that important i should say.

I think people who "only invest an amount you can afford to lose" still end up losing their money. Because after all is said and done, the human psychology will view any investment amount that took convincing yourself that it was "ok to invest" as a risky amount.

And they will fall for FUD and FOMO almost just as hard as if they invested an amount that they couldn't afford to lose.

The right saying should be: "invest an amount you are comfortable with losing". That way, you won't keep looking at charts every 2 minutes with your finger on the sell button.

Yes, for people who don't fully believe in bitcoin, they only trade and store part of it, there are many processes that must be passed to invite people to fully believe in bitcoin, if you look at its development, bitcoin actually has very little risk if we understand and always follow its development, so that we can increase the maximum profit.

those who are smart today definitely choose to invest in bitcoin over other types (gold or property)...

Bitcoin is indeed very volatile but if we want to make big profits, volatile assets are what we need the most. just compare the growth of gold, property assets around you with the growth of bitcoin in the last 10 years then I am sure you all will see Bitcoin -> the most extraordinary price growth.

Yeah but the difference here is.... they will lose a small amount as against losing a huge amount if they would have invested more than what they can afford to loss, one way or another if you are not careful, you will lose money, to me, i think they interpreter the same thing, nobody wants to actually lose any money no matter how small, if it happens, the impact won't be to hard because the invested amount is withing what you can afford.

Losing something which you hadnt anticipated will surely create that kind of emotion or mindset on being that impulsive which would cause even more problems if you dont have that kind of good

self control and you should really realize that investing or spending the money that you could afford to lose is a must whether you are investing or doing gambling or something in related to it.

You wouldnt really be that stressful in case you do lose those money, what matter most here is to sustain despite of that condition.