Is investing more than you can afford to lose inevitable?

[taufik123]

-snip-
I hope I'm betting on the right thing, though. But to those who've been through 2018 and survived, what's happening right now is nothing worrying.

It's really nothing to worry about. I went through several Phases of bitcoin crash since

2017 bitcoin crash up to 43% hit a low of $11,100
2018 was bitcoin's craziest crash, dropping 83% to a low of $3,140
2019 Down 53% to $6,430
2020, no less crazy, down 72% to a low of $3,860
2021 down 55% to price $28,600
2022 it drops to a low of $20,178.

Now just need to calm down and add bitcoin assets for the long term until a new ATH is reached.

[BITCOIN4X]

However, if you know the right time when to invest in Bitcoin then what you can only see is profit. Like others including me, blockhalving is the right time to invest but if you believe in Bitcoin right now you can start investing in Bitcoin and hold them tight for a long period of time but expect for price drop this coming few months.

Invest for the amount you can afford to lose, it is not only about the possible losses you will incur due to market fluctuations but also about the possible loss of your assets from the wallet due to not having good security regardless if it is due to hacking or losing access to the wallet.

The OP needs to learn when is the right time to buy and hold it long term as an investment asset, but he has to learn about how to secure his wallet long term. So we both need to know that the risk of investing in bitcoin is not only about price fluctuations, but also about wallet security which is 100% the responsibility of the user himself.

[Smartvirus]

Invest only what you can afford to lose is a very popular phrase for bitcoiners, but how do you manage to do it, many bitcoiners have lost fate in fiat currencies because of inflation, so they do not consider banks to be an option for holding. Some people say they only keep what they feel will be sufficient for them per month, and invest the rest of their income, will that not be investing more than you can afford to lose?

Les look at it this way; there are different aspects to an investment in the crypto space. Either your buying be it bitcoin or altcoins to hodl, trade or maybe come up with a project, a gambling site and what have you. The language never changes and it remains you "investing what you could afford to loose ". Which ever way you chose to ho about it, what you put in becomes what you can afford to loose as far as this principle is concerned and your surely going to part ways with it should the investment go south.
Fiat undergoing inflation and more being same of its downside, bitcoin has still got the bearish market where relatively all coins get devued and so, you've got something to be pained about too. No where is completely safe always and so, you've just got to do that which is more convenient.

[KingsDen]

The remaining percentage will remain in my portfolio as a stable decentralized coin. It keeps growing for projects, other investments.
By this, I do not save in fiat and I do not also investment more than I can lose.

Stable coins are centralized, so i guess you invest the remaining in a decentralized coin like bitcoin that is volatile, how then aren't you investing more than you can afford to lose, when you only keep a certain percentage for your daily expenses, and the rest are invested in assets that are risky. You know every investment has its risk right.

You didn't get the concept. I only invest a certain percentage in crypto and retain the rest which does not include living expenses in decentralized stable coin.

Stable coins are centralized, so i guess you invest the remaining in a decentralized coin like bitcoin that is volatile

Not all stable coins are centralized. There are decentralized stable coins and Dai is one of them and it's popular.
I guess you understand how one can save in crypto and still avoid volatility and yet remains in the decentralized system.

[Dunamisx]

Some people say they only keep what they feel will be sufficient for them per month, and invest the rest of their income, will that not be investing more than you can afford to lose?

This could have been avoided in it entirety but because of thier negligence to be cautioned and over ambitious to wealth and fortunes makes many investors go extra miles in making investment on the wrong coins and at the wrong time, if one must invest then it should be from the profit realized from the previous investment as such is expected to return back for an investment just to replicate it kind, and nevertheless we must never forget that investment need a maturition time you yield return and same applies to the risk therein to loose from it.

[dataispower]

Investment is base on what you can you not think about twice after investing, i know that it is good to make a specific amount of funds you can invest and it vanishes you won't think of it twice or you won't demand it back. That is why it is good not to borrow to invest in any platforms because if you do and you lost your funds, you now have a double load of payment and it can caused high per tension to some himan beings that HBP. What op analysis is nice advice to new people that want to go new in investment

[passwordnow]

Well, I can relate to that. I'd say that I'm cash broke and majority of my investment is in bitcoin these days and some altcoins. It's because due to my past mistake of selling at a lower price before the bull run came and that's a regret that I've been learning from.
We all have our own techniques in investing and difference in tolerance based on how much we like  to invest. If you know that you can take the risk, you'll be unstoppable and investing more than you can afford to lose. But, that's okay because your plan is for the long term.

[FatFork]

I don't feel that way. When I want to invest in high-risk asset , I firstly put some money aside for this. I would never forget about my investment plan and my goals. I'm a firm believer in setting realistic goals for myself. That way I'm sure I won't invest more than I can afford to lose.

[Z-tight]

I don't feel that way. When I want to invest in high-risk asset , I firstly put some money aside for this. I would never forget about my investment plan and my goals. I'm a firm believer in setting realistic goals for myself. That way I'm sure I won't invest more than I can afford to lose.

Apparently that is what it is, each member or enthusiast with his or her own way of doing it, i have invested a lot of money in bitcoin and if i am to be honest it is not really money i can afford to lose, but my plan is for the long term, so i am not worried too much. I am also working, so i have a steady income, i am learning new skills too and studying different types of investment i can diversify into, all of these just creates more options and opportunities for myself, and i believe that is the correct way to go about things. Bitcoin is a fascinating phenomenon and i have a firm and unflinching believe in the network, and i know long term in will all be worth it, both for those who want to easily use it as a currency in numerous places, and for investors too.

[xSkylarx]

And if you are in for diversification, and in addition to bitcoin investment you put some of your money into real estate, gold, and the rest, and only keep what can sustain you per month, isn't it investing more than you can afford to lose?

How do you go about this personally? I am asking because many people especially bitcoiners do not trust the banking system, with inflation and censorship problem, in that case does it mean that investing more than you can afford to lose is inevitable in this current system? Because your money is somewhere else, either bitcoin or other investment.

It is better to have many investments like gold, real estate, crypto, stocks, etc. rather than keeping your spare money somewhere safe. My mindset is like your money should also generate more money. I don't say that saving is bad but if you have $1m as savings, I would invest some of it on the things I mentioned. Your $1m by the time you will retire if you don't invest on anything would not be much because of inflation unlike if you have a real estate in a crowded place, you can sell it at a high price and get double or even more of your investment.

[Daniel91]

-snip-
I hope I'm betting on the right thing, though. But to those who've been through 2018 and survived, what's happening right now is nothing worrying.

It's really nothing to worry about. I went through several Phases of bitcoin crash since

2017 bitcoin crash up to 43% hit a low of $11,100
2018 was bitcoin's craziest crash, dropping 83% to a low of $3,140
2019 Down 53% to $6,430
2020, no less crazy, down 72% to a low of $3,860
2021 down 55% to price $28,600
2022 it drops to a low of $20,178.

Now just need to calm down and add bitcoin assets for the long term until a new ATH is reached.

Yes, if you look at the historical patterns, it means the periods of the last biggest rises and falls in the price of btc, 2017-2018. and 2021-2022, then we could even expect the btc to fall a little more now, maybe even to 11k or 12k, and then reach a new ATH of 245k in 2025.
However, I am not sure it will repeat everything like 2017-2018 because today is one of the biggest world crises in history and stocks are falling on all stock exchanges, while cryptocurrencies are falling even more, even big investors are liquidating crypto assets.
Obviously, many small investors will give up the crypto and come out with big losses, while profiting will be investors who can control their emotions, stay calm and thoughtful and hold their cryptocurrency in the long run and wait for the trend reversal and new ATH.
Nothing is inevitable but one should always be prepared for big market changes, big market ups and downs and know well when to enter and when to exit. Who knows how to recognize the right moments to buy and sell, for him only profit is inevitable.

[taufik123]

-snip-
I hope I'm betting on the right thing, though. But to those who've been through 2018 and survived, what's happening right now is nothing worrying.

It's really nothing to worry about. I went through several Phases of bitcoin crash since

2017 bitcoin crash up to 43% hit a low of $11,100
2018 was bitcoin's craziest crash, dropping 83% to a low of $3,140
2019 Down 53% to $6,430
2020, no less crazy, down 72% to a low of $3,860
2021 down 55% to price $28,600
2022 it drops to a low of $20,178.

Now just need to calm down and add bitcoin assets for the long term until a new ATH is reached.

Yes, if you look at the historical patterns, it means the periods of the last biggest rises and falls in the price of btc, 2017-2018. and 2021-2022, then we could even expect the btc to fall a little more now, maybe even to 11k or 12k, and then reach a new ATH of 245k in 2025.
However, I am not sure it will repeat everything like 2017-2018 because today is one of the biggest world crises in history and stocks are falling on all stock exchanges, while cryptocurrencies are falling even more, even big investors are liquidating crypto assets.
Obviously, many small investors will give up the crypto and come out with big losses, while profiting will be investors who can control their emotions, stay calm and thoughtful and hold their cryptocurrency in the long run and wait for the trend reversal and new ATH.
Nothing is inevitable but one should always be prepared for big market changes, big market ups and downs and know well when to enter and when to exit. Who knows how to recognize the right moments to buy and sell, for him only profit is inevitable.

The historical pattern of repetition will not always be the same due to some serious economic problems. Some big investors like Microstrategy even almost liquidated their crypto assets, but they are still safe with some of their reserves. This is certainly a scary thing if you don't have good capital management. even microstrategy is almost liquidated, especially for small investors like us.

Bitcoin price is currently falling to a low of $17,708, this is proof that the 2022 crash is still not over. Either the crash will stop where, or it's the current low. but if you target $11k and $12k the crash will certainly continue.

[Davidvictorson]

How do you go about this personally? I am asking because many people especially bitcoiners do not trust the banking system, with inflation and censorship problem, in that case does it mean that investing more than you can afford to lose is inevitable in this current system? Because your money is somewhere else, either bitcoin or other investment.

Someone put it this way- Don't invest what you can't afford to HODL. So if you are newbie please follow this line of thought. You know, one of the craziest reasons I heard for investing more than one can afford to lose is this, "if I don't invest the kind of money I cant afford to lose then I will never hit it big and strike it rich. if this is my one and only chance to make it in my life (which it is) I have to go all in" . Like they say different strokes for different folks isn't it? For this person, the banking system, with inflation and censorship isn't their problem. They just want to hit it big.

[PX-Z]

Investing the $300 out of $400 income is too much. How can you live for $100. If you have a family to feed $100 is not enough for foods and monthly bills.
Before you become paranoid of inflation of local currencies including usd, think that the prices of your daily needs will increase too.
If theres a growing inflation it's obviously and common sense that $100 is not enough for a month or half a month for daily needs.

Always follow the spend, save, invest rule. Most of your wage will be on your spends, inflation affects everything that you need to buy, that's why you need to make large portion of your earned money for spend and that would be 50% of it. Saving is 30% and invest only 20% of it. This 20% and 30% will depends on what risk control you are using in investment if invest > savings or the other way around.,

[Pmalek]

I invest little to no money into Bitcoin. I work for it occasionally and provide services in exchange for Bitcoin quite regularly. So my income from fiat remains a stash of its own and my Bitcoin is a different pool.

It's hard to manage fiat in the way that you can comfortably say I only need these $100, while the rest will be invested into Bitcoin. I am using those numbers because that's what was mentioned in OP. Things happen short-term where you need more money than you originally thought. Financial needs for you and your family change. You need to fix your house, you need to repair your car, buy a new TV because your kid broke the old one, get your daughter some bracelets, buy a new suit for work because there is a tear in the old one, etc., etc. How are you going to do that if there is no money in your bank?

Imagine you just started out investing when Bitcoin was $50-60k and because you didn't plan for future needs, you now need to liquidate a chunk from your portfolio to pay for something that has to be paid short-term. You would be making a huge loss selling your coins at $20k when you bought them at $50k.     

[FatFork]

How do you go about this personally? I am asking because many people especially bitcoiners do not trust the banking system, with inflation and censorship problem, in that case does it mean that investing more than you can afford to lose is inevitable in this current system? Because your money is somewhere else, either bitcoin or other investment.

If you want to invest wisely, there are a few questions you should ask yourself.
1. Do I have extra money that I don't need for day-to-day living? It doesn't matter if it's $100 per month or $1,000 per month, whatever you are able to afford. Start with a small amount of money, and increase that amount gradually if you can.

2. Do I have a good plan on how to allocate the money I have?
It's important to decide how much of the available money to invest in which types of assets. For example, can you handle high-risk investments or will that be too much? What can you afford to lose? You don't have to expose yourself to high risks unnecessarily, it's just important to understand that lower risk also means lower potential return.

3. What time period will I invest, how long can I wait?
The best time for investing in crypto is today and for the next five years or so. But the shorter the time period, the greater the risk. As a rule of thumb, if you cannot wait a few years to receive the return, it is probably a bad idea to invest.

[Gosgosking]

To beginners it is important they invest in amount that they can't afford to lose because bitcoin is risky and if the market go dip they won't be able to control their emotions.  But as for people who are already use to bitcoin they can decide to take the risk to invest in bitcoin more because they already have understanding of the market of bitcoin.

[Luzin]

Bitcoin price is currently falling to a low of $17,708, this is proof that the 2022 crash is still not over. Either the crash will stop where, or it's the current low. but if you target $11k and $12k the crash will certainly continue.

I didn't expect the price of bitcoin to be below $11K-$12K it seems like it's really bad. It's certainly nothing new because I've been through two periods of halving. But if BTC's price is below that then it will ruin the halving cycle against BTC's price that once happened. Although I know at the moment I think many users are optimistic that BTC will again reach its highest price all the time. A slight difference also occurred in the previous halving period the state of the global economy was good. But this time interest rates are rising, macroeconomics is in trouble. That's at least what makes the difference, but my hope BTC is strong above the price you mentioned.

[Alisha-k]

I tag Bitcoin a safe risk. Yes investing such amount in Bitcoin is similar to investing more than you can afford to lose but in real sense it is a worthy risk because no matter how the price of bitcoin falls it will always rise again. As long as the fund is not needed in a near future it is worth risking. Where i can't afford careless risks is in shitcoin and it's counterparts

[_BlackStar]

Imagine you just started out investing when Bitcoin was $50-60k and because you didn't plan for future needs, you now need to liquidate a chunk from your portfolio to pay for something that has to be paid short-term. You would be making a huge loss selling your coins at $20k when you bought them at $50k.     

Some people may not consider this situation because they forget that they still have other plans for them to make besides just investing. That's why the advice is to invest the money you can afford to lose because we never know if we don't need the money we have invested here in the future.

It would be great if we have bitcoin earned from services or signature campaign that are not for sale, it is an investment for the future while other income from real work is to make ends meet and savings.