Bitcoin Forum

Greetings folks I decided to write on this topic based on one of my previolus replies on my local board because for me I think most people folks are still missing some few things I will like to talk about today on this topic.
Basicaly   many investors are misunderstandiing the advice "only invest what you can afford to lose." This saying doesn't mean you should  place little value on smaller investments and feel it is not a big deal if you lose it. But what it means is that every single investment big or small matters very well and that is why we have to be cautious about them Because if you feel the investment is small and just place little value on it it's just like you are gambling. Basically it will become a habit and one day when you sum up all the multipre small and careless investments  you will see it has become a   significantly big amount of money.

Small investments and strategy thinking

The truth is we see smaller investments as a learning opportunity to know how to invest bigger amounts which helps us stay disciplined. Yes that Is true but my fellow bitcoin talkers the secret to investing starts from our ability to evaluate the problem and bring out the solution, not evaluating the problem with just half of the solution. The idea is not about gamblilng  on what we can afford to lose but it's about calculating the risk we can afford to take with a well thought out strategy and with a good  reasonable mind. Knowing that the market goes up and down is good but remembering that true wealth is built over time, not overnight.
Lastly we must know that small gains from small investments mean great achievement and every avoided loss helps us grow a bigger financial goal, because we build our portfolio little  by little with good intentions and care. It all depends on how we view every investment regardless of the amount we invest.
Thanks for your time folks...................

The post is a great one and yes every dime matters as long as investment and business is concerned especially for wealthy people and I think the difference between the wealthy and the poor in terms of business is that, the rich takes account of every dime spent in business and investment even from the first stage regardless of the amount invested while the poor thinks small amount investment are test ground for bigger investment amounts and I agree with you that, when we keep losing small amounts on investments trying to pave way for bigger amounts without a proper calculated risk, then we end up losing money and when compounded, we might be surprised at the amount already lost.

You might not be correct in the whole contexts but I understand your point.
Investing with what you can affordable to loose dogo actually mean you should invest little with little amount. It's just a statement that have to remind you about the risks of the markets volatility and as a human whose expectations fails against your confident, there'll be a room for you to keeping going without a weigh down emotional and your striving to achieve your financial obligations.You can call it an adage or advice from experience users in the bitcoin market.
And to make it clearer, your investment approaches which may be determined by your capital or accumulating plans determines your incomes depending on when you want to opt out. So it's right to invest with any amoun as long it can be tolerated. The risks is always yours based on affordability.

This simply means that you shouldn't invest with money for your important needs or basic needs, rather, you should only invest with the extra cash i.e your discretionary income to enable to hodli for long and wouldn't give a fuck if the price dips or if you don't make profits in the long run.

When you invest with caution since you know that bitcoin is a volatile asset and profit is not a guarantee in future, you will not only focus on investing in bitcoin, you will also try to diversify into other assets like bond, shares, equity and cash equavilents.

The concept of investing what you can afford to loose has been long talked about that it's associated with with coins thar lacks real certainty of it long term potential. Because of that, it's adviced that one invest with what he can afford to lose. For a bitcoin that earns investors profit by virtue of how much coin the investors holds, the idea of investing what one can afford to lose is no longer necessary because with that mentality, it's going to be rather deficult to push for a robust investment.

Bitcoin and everything in the crypto space are all volatile but the degree of volatility varies. For the ones that are extremely volatile, a DIP can easily result to a complete loss and if the invested amount is much, it can tell a lot on the investor. That's the reason why investors are advised to invest what they can afford to lose so regardless of what happens, they can manage to deal with the outcome be it good or bad.

Big or small capital, it is not important thing to consider. What is more or most important is whether you already thought of and actually assigned your money for spending fund and emergency fund. If you have money for these two fund parts, what you send for investment capital and your investment will become more easily as you will actually "afford to lose it all" because your finance will still be good after that complete loss.

It is implied meaning of "Invest what you can afford to lose."

Your statement is a little bit confusing though, with the explanation you gave in the first paragraph I think you're the one missing the whole thing here, the word invest with what you can afford to lose means that we should find a suitable amount that can fit our weekly or monthly routine buying of bitcoin so that to ease the pressure and also prevent us from panic, because I noticed that the reason why most Investors get  panic during the dip is due to the fact that the amount they invested into bitcoin is 1 to 2x thier monthly income so whenever there's a decline in the market they always feel pressured, while some people can still be discipline enough to withstand the pressure without making wrong decision, but when you invest with what you can afford the pressure will still be there but can't be compared to those that is Investing in bulk or in lump.

 okay i think that general statement that says <<only invest what you can afford to lose>> is becoming to over used lately becuase it simply does not mean people should avoid investing, it just means they should not risk money needed for food, bills or other important things. using extra income makes it easier to hold through market ups and downs without having to panic. also putting all your money into one asset is risky!!! so it is smart to spread investments across bitcoin, stocks, bonds or even cash savings i mmean there are a lot of trusthworthy ones lately with good testimonies from people. at least that way even if one market struggles you still have other options to fall back on.

''Investing with what you can afford to lose'' do not really mean investing very little amount but it means an amount that won't bother you if you lose it and it comes from your discretionary income, and everyone has their level of discretion. Someone can have 1 million as a discretionary income while another person can have 10,000 as his discretionary income but you might be thinking that the person that is investing 1 million is not investing an amount he can afford to lose but that is not true because your basic income determines how huge discretionary income. If your basic income is 100,000 you can comfortably invest 1000 which you can afford to lose. No investment is small; everyone is just investing at the level of their own discretion. Just that those who invest very huge amount from their discretionary income has advantage of big proceeds over those with low amount. Let's take for instance, someone who bought 1 bitcoin and someone that bought $50k worth of bitcoins cannot expect same return on their investment.

I should believe you have said more than enough mate, investing with what you can affordable to loose is a remark that earlier informs beginners who are only interested on investing in Bitcoin with a wholehearted of getting rich in the very close time and also instigates risk management.

It is cordially a reminder that the market is risky so you must treat it with caution and invest what you can affordably let go without getting to panic when the uncertainty revolves against your expectations.
Also, so that you don't have to be left stranded when emergency needs arises as a result that you have used all your income to invest without considering savings for emergency needs in the short time.

So is basically to emit investors pressures when price falls or during emergency needs.

I really don't think anyone will invest in a business without the hope or intention to make profit, so it doesn't matter if it's a small  or big investment,  the truth is that you want to make profit from your investment. That's why in investment unlike gambling you have to take calculated risk.
It's true that some people feel that small investment are for testing while hoping to start big when they have big money,  but like you said if you calculated the money you have invested in your small investments,  you will be surprised how much you have lost. So in my opinion I think every investment should be taking seriously, with the intention of making profits.

It does not make sense whereby you have to lose before you can learn, this shows that we have a lot to do and out in place ensuring that we are well prepared for it before the start, that is why we have airdrops, faucets and any other demo accounts to use for learning at no cost to us, but when you get into the proper market, you can't afford to even lose a penny for any reason, because you will be accounted for all you made or lose and this goes a long way to helping you sustain into crypto or not, which means, we don't have to learn the hard way before knowing the right thing.

I beg to differ. Small investments shouldn’t always be viewed as just a form of testing. While some people may want to use them as  experiment, for those with limited capital, like small investments I feel they carry real weight. Approaching it with a casual mindset could mean missing opportunities for growth and discipline.

Investing what you can afford to lose. I believe this is a word of advice for beginners who are just getting to know about investment. The essence of this advice is that it is very common for beginners to go into an investment aggressively without fully understanding it and what the market is like.

They often invest more or even all they have, and most times beginners give up because of price declines in the market, thinking it is the end of the investment, which leads them to sell at a loss. So this serves as a guide for beginners to invest gradually, and as knowledge and experience are gained, there won't be risks in increasing the investment due to the understanding one already has.

Investing amounts you can afford to to lose doesn't necessarily mean you would lose the money. It's just a narration to buttress the importance of investing with amounts that would not affect your living condition in the event Bitcoin performs below expectation since there's no guarantee on your investment. Bitcoin is an investment and not gambling, even while investing amounts that you can afford to loose, you aren't gambling with the funds since you're putting up measures to secure your financial future every time you invest into Bitcoin.

Furthermore, it's important that you don't put yourself in financial pressure just to invest into Bitcoin. That's why you must first identify that you've discretionary income first before going ahead to invest into Bitcoin.

To be frankly speaking, for the fact that people invest an amount they can conveniently afford to lose, doesn't mean they place little or no value to that very Bitcoin investment. Because judging by how volatile the price value of Bitcoin is, that was the exact reason why people came up with that phrase for people not to invest all their money in Bitcoin, when they aren't ready or willing to lose a percentage of that exact amount, due to it's volatile nature. Example, assume a scenario whereby you were given a Church tithe worth $1000, to hold, and you went further to invest it in Bitcoin, and only the market depreciate and the value of the money reduced to $700 due to it's market volatility. And the church comes asking for their $1000?... What will you do???... Because that's a perfect example why you shouldn't invest all the money you have, but rather a percentage of what you can always afford to lose.

I always consider the saying of only invest what you can afford to lose as just a small gesture to let you know that market gonna be bumpy and you better be investing money that won't make you stressing whenever there's sudden dump and causes you to panic sell.

Just because you can afford to lose the money doesn't mean you can just throw away money into the most random investment. You still need to have your own due diligence and invest responsibly.

Its your own opinion could be right or wrong. Too many people twist “only invest what you can afford to lose” into a careless excuse instead of treating it as a principle of discipline. Even the so called small investments build a habit that either careless gambling or thoughtful strategy. Like you mentioned, wealth isnt about overnight wins, but a consistency, risk management, and respecting every dollar you put in.

Investment is related to your financial management, regardless of how small or large the amount you allocate for investment, you must know the exact figure. If your finances are still insufficient to meet your living needs, it's better not to think about investing for now. Instead, think about how to increase your income.

It is important for everyone to learn financial management. Without good financial management, there may be people who invest excess money. It may not be felt in the near term, but when suddenly a large amount of money is needed, it could disrupt the investments that have been built.

I think you misinterpret crypto and crypto trading investment, as far as I know the nature of investment in investing in capital for a crypto asset in a certain period of time, Of course to get a profit where when the assets you invest in that time the value of the asset increases, of course the points below should not apply in investment.

Where the points above will apply where when you trade crypto assets in the market, with small capital trading or thinking about strategic and learning to losses during your crypto trade.

So, you have to separate investment and trade, do not stir into one, there are differences for both.

Actually, that advice is a sort of "guidance" given to newbies so that they won't lose the little money they have in case something went wrong. ESPECIALLY if plebs like us are trading very volatile assets like Bitcoin.


The bolded part of the quote is actually what that emphasizes. Don't lose all of your capital for us plebs to stay long in the game, to invest/trade again when another good opportunity comes.

It is not about the small amount or investment but rather a principle of not wanting to take bigger risk that can drown you if goes the South. No investor adviced anyoen to take their investment lightly and if they do they should not be investing it it at all but there are some rich people do that as diversification strategy for example in shark tanks they invest a small amount for them and hoping it could earn them in millions and in certain occasinos it did them too.

In depending on other people’s good remark on a particular asset to invest into, one should always do their own research also and not just go ahead and start an investment. We have heard stories of people shilling projects and hyping them like they are actually worth it, only when you invest that you’ll get to know the real story behind the project. When you look up at the word “discretionary income” on dictionary, you’ll get to know why it is being emphasized again and again to use such funds to invest in bitcoin only.

Bitcoin investment requires a discretionary income which means having emergency funds set aside also before embarking on the investment is the best. Investing into Bitcoin does not mean you’ve invested with money you can afford to lose but actually you’ve invested with money you can afford to spare for a long period of time before finally taking profits.

You highlighted a very good points though and yes a lot of us misquote or rather misinterpret this very word " investing with what you can afford to lose" to something else and sometimes when they do so depending if it's a small investment and they lose they show little concern to it but it's quite different from when you're gambling that you need to take a halt when you lose.

Yes, this is just a term where investing should not use money for basic needs, so in that sense, investing is with what you can afford to lose—it doesn't mean gambling, it's just that the money you invest is for the long term and you shouldn't cash it out in the near future, even though I'm sure bitcoin won't drop to zero.

Diversification is indeed a good strategy—some investors have already done this; they don't just focus on Bitcoin but also on other assets that are considered stable.

Invest what you can afford to lose. It is not a new statement in the crypto industry and I believe that only those who do not understand Bitcoin will likely misinterpret the statement. That is one of the reasons why we are always advised to have knowledge before investing in Bitcoin, so that you may not regret it later after taking a wrong step in Bitcoin investment. From the definition that Bitcoin is volatile in nature, we should understand that the money that is supposed to be invested in Bitcoin should be money that someone will not likely need in the near future. This means that the money should be something someone can take off their mind from, even when the price of Bitcoin is dropping it will be panicking.

Saving investments is a trader's first priority. And the best solution for this is risk management. And the best solution for this is risk management, one of the rules of which is "only invest what you can afford to lose". In addition, to save their capital, investors resort to hedging, which prevents the loss from increasing.

Risk management of all investment practices is an assured way to make small investments matter because one would be able to plan well and make better informed decisions and as rightly said, small investments  may matter  more because they make an investor master the power of time and consistency, which among all characteristics is a major criteria above the initial amount invested.

Once there's the decision to start and then the consistency of your contributions is forth coming, that's just everything that matters when it comes to small investments requirements and this is what separates those who invest lump sum from those who patronize what I call, fractional DCA.

Is very simple investing what you can afford to lose doesn’t mean that it have to be small or big . But something you know that once you lose you can easily get it back without no stress or going through some complex task and stuff .

What Mr A could afford to lose might be what Mr B can’t dare to risk . All boils to how financial stability and stuff so it can’t always be something small because what you call small can be something big for another folk.

You're right, it's about calculating the risk that we're about to take. And so, doing trades or investments at a small amount from the start is a good step.

If it fails, then you've got something to learn from it and then you'll avoid that once you try again. But many don't see it that way because they think that they have nothing to gain from it.

Just think of the failures, bad trades and investments that we have, we have to learn from them and it's a step for us to become successful and win from the next process that we'll step in.

Plus currently, that's ESPECIALLY MORE TRUE today than during the low prices during late 2022 and early 2023. During the current market, people who believe that they could make millions buy simply using a large amount of their saving in a coin TODAY might be making a BIG mistake.

That Golden Opportunity has already taken place. Another such opportunity might happen again during the next bear cycle.

There are a lot of things to consider with this, and like how the other members have said, it's not to be taken out of context, the part where "only invest what you can afford to lose". It's definitely for risk management. Even in trading and crypto investments, it's being applied—the part where you should be okay with accepting the specific loss.

The critical part IMO is the learning that you can get after investing. The things you need to avoid and the experience where you lose your investments. It should be part of the investment.

I won't call it as a mistake if their plans are for long term and they are really confident with Bitcoin to a level like even if Bitcoin goes like 50K still holding their asset while also following the basic rule of don't invest more than you can afford to lose. And this combination will let them to keep the coins and when it goes up again there will be returns for sure, might be little lesser than buying at the bottom but no one can predict which is the bottom. SO I would say buy now and wait for the moment instead of waiting for the right moment.

It's very important to comprehend and understand the statement "invest you can afford to lose". The main mistake which most of us make in the start is that we think we can become rich over night by investing huge amount in crypto trading. While in the start we all have to face loses and that's why we must always start with small capital. The money we invest in trading must not be required for our daily living because if someone start doing that then he might made his real life uncomfortable.

The advices about invest using the money which you can afford to lose is based on the experience of majority investors so, this is not only the words and why they did that because there is no 100% guarantee safe for investment strategy which mean there is always a way to lose your money especially we all know cryptocurrency in the top position of investment with high risk so everytime want to invest the investors should be used the money which they will not used to buy daily needs

But don't mean those advices will make you invest on random coin because it is similar to gambling and researched also necessary to ensure you will not lost your money and more caution when you were decide to invest at the particular coins and in my opinion successful investment is not determined by the amount of money we use because whether it small or big is really matter and the most important is good investment mean we will see the value always be increase for long term

Profits do not matter whether it’s small or big, the important thing is you are in profits. Now if you know how to utilize this small amount of profits and maximize its potentials to gain additional winnings, that would be a very wise ability of yours.

The real challenge is simply not profiting, because anyone can profit from any business, but the biggest challenge is how to increase your profits from the same investment, or even from a diversified investment that you have achieved because of your initial profits made.

Probably not if given another context. But because we're mere plebs who have limited capital, then therefore, we probably should be more efficient with our capital, no?

The mini-crash that we have experienced a few hours ago was a good example. It would have been a good opportunity to buy more units of Bitcoin for the same amount of fiat.

Well said, it's not entirely wrong to trade with what you can afford to lose because there are times that the market would not be in your favour. But when it comes to trading every risk taken must be calculated. Investing a small amount of money would only get you frustrated and it might take a period of time to actually see the results that you are looking for. This is the reason why a lot of traders are very calculative

Exactly that is why is always very advisable you should make your own personal research before you invest in bitcoin investment. Because you will always find it difficult if you didn't get the Knowledge and you will be hearing different opinions so is more better you should do your own research and you will know the main thing and take the step and start your bitcoin investment. If they said invest what you can afford to lose doesn't mean you most invest a little, but the money you like to invest he should not be the funds you can used in a short term even you lose it you won't feel  much bad like others that invest huge.

Bitcoin is always volatile and we can't predict the market so we need to think wisely i know type of funds we invest to risk, that is why they usually said invest what you can afford to lose. You can invest huge amounts in bitcoin and be profitable but can you be patient to invest for the long term, that is why if you used something you can lose you can probably leave it for long term thing he increase in price and you will start to get value of the funds you invested. Bitcoin is the best in crypto and that is why is the best investment and can give you better profit and reduce your risk.

What's strange isn't the small profits, but rather the expectation of large returns from small capital, especially in trading and investment. This is generally what most people hope for, although occasionally a few individuals succeed. If we start with small capital, the consequence will be small profits, and this is a much more rational perspective on investment and trading. There's no need to rush; the most important thing is how we can survive and continue to grow to achieve consistent investment results. Greedy people will certainly not achieve success, no matter where they are.

That is right, this is why people suggest start very small when trading, because if you are a newbie then you are going to have trouble at your early days and then you can grow and be better. But always start small, even a demo account with zero real money is acceptable, before you learn the ropes, then you can start with small amounts and then you can grow. This way, you are not trading with a lot of money and if you lose then consider it a learning expense.

The more you trade with that small amount the more you are going to learn and eventually you will start to make a lot more money and when your returns become better consistently, you can start to put more money in and can get better results as well, should be fine.

To be fair I was one of those people. Back when the all time high was 65k+ in 2021, I kept buying even in 2022 and I made it averaged out, it was definitely something that was not easy at the time because many said that it was crashing hard and I still kept doing it. I believed in it and I still believe in it.

I think that is the most important part. If we do this, then we are not going to be troubled and can do fine. This is the most important way to make money, and I am sure that many will handle it without much issues. It's going to be something that will be a bit difficult for many people to not have that kind of returns, but drops are actually good to buy bitcoin, even though it may keep on crashing further.

Before investing, every person must be aware of this, the amount of money that he can lose should be invested or traded. Those who have good financial stability can certainly take big risks, but those who have poor financial management are afraid of taking big risks and cannot take them due to lack of money. For example, if a rich person invests or trades, he is ready to take big risks because he has a financial position and if he loses them, he will not suffer much. But when a poor person invests, he does not have much financial management, due to which if he loses a small amount, he suffers a lot. And in the case of investment, there is no financial aspect, but rather the one who invests with a small amount of money and the one who gives a large amount is the same, only the difference is in terms of money, small and big.

Ideally investments should be made slowly without rushing into large investments. Especially if anyone forcing themselves to do so. That is not good for sanity. However basically it's all about risks, where when there are big risks there is the potential for high rewards. So I think it all depends on each individual. And they actually have the right to decide their own approach. But one thing that needs to be carefully considered is our readiness to accept all the risks that may arise. And this applies to everyone including beginners and even experienced one. So whatever we want to do think it maturely about all the possibilities. And learn everything carefully in order to build a good portfolio for financial maturity.

All great things come from small beginnings, and all success stories start from struggles. There is nothing wrong with investing huge amounts of money as a starting capital, but it can be challenging if you have no experience.

But this is the real thing.
Many people started a business with a small amount, but not all were successful. The same story of those who started big. Why? Because this is not just all about money. What matters the most and the main reason why they succeed is that they are preferred and are running the business the right way. It is more about strategies than money.

That is right, when you start small, you see the gaps in your judgement and make an easier way of adjusting your understanding of the market. It's the same in business, you can start any business in the world, but if you start small, you will have a chance to change later on and do what the market wants. Plenty of traders started horrible, losing, being bad, but most of them stuck and grew and be better because they learned from their mistake and they had that chance.

If you start with all you got, one mistake and you are gone, you can't learn from that mistake and even if you do learn, what are you going to do about it, you are all out of money. So start small, and learn from your mistakes, before you start to trade more.

It is very important to find a trading strategy that, if risk management is followed, will make it possible to profit from investments. And in this case, it will be possible to make a profit in accordance with the size of the investment, gradually increasing its size.

It clears up one of the biggest misconceptions people carry around in this space the phrase “only invest what you can afford to lose” often gets twisted into an excuse for careless behavior but the reality is exactly what you highlighted every investment no matter how small deserves discipline and attention otherwise it trains you into gambling habits instead of building investor habits. Small amounts can look harmless at first but when they’re stacked up carelessly they turn into a larger hole over time and people wonder where their money went the smarter approach is treating even the tiniest allocation with respect seeing it as part of a bigger picture when you start with that mindset discipline carries over naturally as the numbers grow.

The idea of strategy over gambling is key too the market will always swing both ways and no one controls that but what you can control is how you prepare how you size your risk and how you protect yourself against emotional decisions small gains may not feel life-changing in the moment but they stack into consistency and consistency is what turns portfolios into wealth over time. So yeah the wisdom isn’t just in “affording to lose” it’s in knowing why you’re investing how it fits into your plan and making sure even small steps move you toward the larger financial goal step by step that’s the true foundation.

Yes, that's right. I also see it as a process because achieving success is not instant everything requires a process, strategy, and consistency. If you invest with what you can afford to lose, it means you won't panic when price fluctuations occur. Even if you don't have a good strategy, you might experience losses, but those losses won't immediately frustrate you. You can start over with new capital and use previous losses as experience in making future decisions.

If your goal is long term of course buying in stages with money you can afford to lose is a good strategy. The advantage of buying with money you can afford to lose is that you already have an emergency fund and have all your basic needs covered. However if you buy with all your capital when you have an urgent need, it will be confusing and ultimately ruin your finances. So I completely agree with you the path to success must start small so that slowly, over time, we gain experience and continue learning, leading to success. Because in investment and trading, money is not the main thing, the main factor is how you implement your strategy.

It's best to start small and test the waters until to understand how it goes for the most of us. So, investing small is a good start and this is how the majority of the investors do before they dedicate a bigger amount for their investment. It's not going to be an easy even if they're experienced somehow in other investments because with how volatility works for bitcoin and the crypto market, this doesn't give them a free pass to avoid that part for which all of us can't skip that. But, to take that naturally gives us a better understanding about this market and gives a stronger emotion which is an important piece to survive here.

My mindset about bitcoin was that I had to start big to be able to achieve something significant but over the course of being active in this forum and engaging in discussions, I have realised that little investment per time and done with consistency is all most of us need to achieve our dreams. Those little investment will not have much impact on our daily lives and finances and they are definitely what we can lose and will not feel it much but cumulatively, over time, they will turn into something very big.

Small investments matter they teach risk, discipline, and strategy.

That seems too easy to read but is actually very difficult to follow. Newbies will be looking towards trading as a money making opportunity they don't want to miss. They will make their basic calculations about profits and will start thinking about the luxuries for which they will take few harsh steps towards trading. With this mindset, they can never start small. Their first step towards trading will be maybe with half of their savings expecting huge profits. At the end, they will end up losing everything.

Trading is a skill and not everyone is perfect. Good research and experience is required before anyone can actually start earn a passive stream. Time well spent in trading will give us that experience and we will know when and how exactly to enter the trades.

To be honest, we need skills and actually a lot of patience to start small. Not everyone will have it and few might think these small investments are only going to give them small profits so they would instead prefer pouring higher amounts expecting higher returns.

What is going to happen at the end, well we all know that very well. They might get ruined by seeing all these investments vanish as they did not have any patience to start small and were running behind huge profits neglecting the risk they are taking. Patience and emotions will pay quite an important role here. Even to start small we need to keep our emotions away and make up our mind to not run behind huge profits. This is something every new trader needs to learn before starting with their first trade.

Investing small, like enough amount that you wouldn't care if it's gone, is a great way to learn because you are going to not care if you lose and you are going to learn from it. However, in most cases, people do not do that because they are not really aware of the situation all that much.

I personally believe the best way for a return would be just making sure that we deal with something that gets great results with time. So that means, if you rush, and start big, then you are going to lose big, and that is going to make you start from a dig, and climb your way up. What I believe at the moment is the fact that you are going to end up with something that would be a lot better if you could take it slow and do a better job that way.

Invest what you can afford to use simply means that you should use only your discretional income to invest in Bitcoin now the reason why it is advised to use only your Discretionary income to invest in Bitcoin is because bitcoin is highly volatile in nature and if you invest $100 it can reduce as Time goes on to $80 or $70 or it can also increase so using only your Discretionary income will make you not to panic when there's a dip.
And for those that are holding bitcoin for long-term using only your discretionary income will help you to hold for long term without dipping hands into it.

You are correct Merit.s, when you are investing in Bitcoin you need to have other investment also because Bitcoin is highly volatile in nature however before you diversify into other investments try to make sure that you have reached a good level in your bitcoin investment so you won't have issue building the two.

As investment is concerned everyone is liable for their loses and every action taken by you depending on how much you have invested in your Bitcoin portfolio, yes people usually says that invest the amount you can afford to lose but that doesn't mean we should invest with nothing or with less amount, the reason is that, the phrase is commonly used by people to say express one strength and power to let go the amounts they invested. It's just like as people do say in gambling, that gamble with what you can afford lose, this really mean that you shouldn't used money meant for someone else to invest or gamble because there are every chances that you can't recover those money anytime soon.

Starting off with the idea that you can virtually save everything is actually even wrong and that's why many people have ended up a failure in their investment journey. Before ever you start your investment there should be limits to which you know and have the money that you want to use for the investment because anything aside and amount that you can spare also called discretionary income will still land you in a tight situation where you spoil or scatter your whole investment.

These discretionary funds can actually prove to be very useful for long term holdings as mostly people start panic selling even if the prices hit a solid peak. These discretionary funds will make us pretty less interested in watching the charts everyday and all we will be looking for is major level breakouts either to book some profits or add onto our positions. For me, long term holdings have proved to be really beneficial if I kept my emotions away. To keep our emotions away, there is no other option but to invest a very minimal amount which we might not even care about.

It's even okay to keep all our money just into bitcoins as these discretionary funds are already going to be minimum so why to distribute them in various other coins?

Everyone should invest according to their ability and most people do. However, investment is very important if one wants to change their financial situation. One cannot change their financial situation by just saving or spending less money. To change one's financial situation, one needs to reinvest idle money and generate profit from it. No one becomes a big businessman or a big owner of money in the beginning if he does not inherit it. Through his own hard work and right investment, a person can change his situation.

Not everyone starts trading with this mindset. Many people will already be expecting huge profits in trading and to do so, they will never start small. Starting small will make us patient and will also teach us to be calm in every trade. Small investments will not make us take rapid decisions as we already would have made up our mind of losing that amount but with huge figures, we will start taking impulsive decisions which will never make things better instead will keep on ruining our portfolio.

Starting small will make us learn a lot of new things which well-implemented can make us earn a decent amount out of trading. We should not get carried away just by thinking about the profits after investing huge sums but should think about the loses which might incur.

This is the exact meaning of the long statement of Invest the amount you can afford to lose.
I think the OP misunderstood the statement and thought it is all about small scale investment; it is not about small or large scale investment, it is all about risk management; how can you manage your risk by not regretting any action you took in your investment since if it is a gain, you will take it alone.

Crypto market is volatile, that is why instead of making quick decision without thorough research one should be patient and keep accumulating money before they will learn about crypto and start investing in it. And it is also a statement to limit people who are willing to make quick money to avoid loans for bitcoin trading or investment, because the outcome might not be nice especially if it is about trading shit coins without experience.

Both rich and poor cannot spend more than they have left after making mandatory payments and spending on their daily lives. Therefore, everyone invests based on their budget, but naturally the higher the investment, the higher the potential profit.

Well... If you are risking peanuts, its easy to get sloppy and pick up bad habits like trading too much or taking dumb risks.  Its like a game at that point.

But as soon as real cash is at stake, all that chill goes out the window. You freak out and end up wrecking your account with those same bad habits you learned when it was just $50 on the line.

You only learn to be disciplined when losing money actually hurts.

What small investors should do is make sure they are dealing with correct phrases and indicators so that they can do a fine job. In most cases, people make mistakes without realizing what the mistake is, and that doesn't end well for them. This is why learning is so important before you start, so that when you lose, you can do a better job.

Many people will make a mistake on that, and for that reason it is not going to be ok, because that never really gives the good return they want. In the end, if you really want to do better, you should be aware of your mistakes. Nobody says you can't make a mistake, you can, it's natural, but you need to be able to look back on it and do a fine job, that will give you a good return.

And that's the whole point behind why we should only invest what we can afford to loose. Investing excess money will never be beneficial here. Not only in trading but it will also ruin your other finances as you will end up over-pouring your funds into trading with less or no outcomes and your other finances will get stuck. It is even okay to invest a very little amount if that is what comes out of our budget. Even if we make a profit of one dollar, it should be sufficient as you already have mitigated the risk by not investing excess money.

Always start with small amounts no matter what you hear from the society. This small amount is going to make you earn real life experiences and this is something which will make you a better trader in future.

Usually your inputs determines your output, just as they said garbage in garbage out and that is what determines what you should gain from your investment or trading. You can expect to invest few cent and expect to reap thousands of dollars, there is no place such thing works in trading or investment, however we should always learn to play with what we can watch going away from our hands than what we can't afford lose while investing or trading.