A fortunate story of a crypto mentor

[Cryptomultiplier]

Someone I knew, a mentor who showed me what I was missing by not getting into crypto invested 100k in crypto, he started DCA'ing in 2018 to 2020, I was still struggling because I had no job then, he kept me close and kept me informed, in 2020 is wallet turned 4,000$ from 100k, he was so calmed like it was nothing, when he told me this I freaked out..  He replied " I was ready to lose the money anyway" that's investment for you..he said.

In 2021 he made a bit over 1 million dollars when market started to recover, the once 100k that turned into 4k grow over a million in dollars, he his an icon of motivation for me today , the reason why I shared this story today is for you to learn a lesson or two .

If he invested what he is not ready to lose he would have freaked out just like I did and took out his 4,000$ in big loss, so my point is, why would you invest money that you aren't ready to lose in the first place? This is wrong, you won't be able to sleep at night, you won't be able to take your eye off your portfolio, there will be no single calmness in your world.

Crypto is very volatile, invest only what you are willing to lose, no amount is too small as far as that's what you can afford to lose.

Have a great weekend.

That’s the essence of investing, you will not only consider about making profits but you should think of losses too that anytime will attack you because that’s also part of building your success later on. But it would be much better to invest on the amount you can only afford to lose, as there’s no security from investments and you might only end up losing so better yet, anticipate losses too more than you anticipate for profits. Because if you’re only focus with profits, that makes you greedy and will certainly invest because your emotions are telling so, which i think won’t be helpful at all.

As OP told, DCA is a strategy of investing that can absorb loss without the investor even noticing it much, but if and only if one doesn't stop the regular percentage of scheduled investment because of a loss that may not linger for long.
I admire the courage of your mentor in maintaining discipline despite the market conditions that would have made him relent in his consistent fractional investment.

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[Coyster]

It's been a long time but I can still remember  Doge coin, Matic, Harmony, Shiba and some other altcoins, I don't know how much he put in each of the projects per say but he made mention of these altcoins,

The thing is, these altcoins can go either way, they could pump or they could dump, that's why they are called pump and dump projects/coins, and as a result of that, they are very much more risky than investing in Bitcoin. In the short term altcoins (if you are lucky to get a good one) can generate quite a huge ROI for its investor before it dumps (which is somewhat a certainty). Thus your 'mentor' might have been lucky to stake his money on these coins at the right time, but on another day he might not be that lucky. If you want to hold your crypto for a long term after investing what you can afford to lose, then the crypto of your choice should be Bitcoin that is sustainable for the long term.

[kamvreto]

Even if he invested money he could afford to lose and it was completely gone, one would never sleep in peace. Will always imagine why he could fail and lose the money. What really needs to be prepared is a psychology that is able to realize that the capital owned can be lost or even increased, if psychology is not ready then everything will fall apart. Your mentor may be lucky enough or have good trading skills. Able to get a big profit, but we also have to ask how many losses the biggest ever experienced. Because someone only sees the benefits they get, not the losses they have experienced, so they will give up.

[cryptoaddictchie]

Thats because he said that was nothing means he is ready to lose that 100k. Im sure he got depress over it when he see the $4k value during that time but got discipline to supress his emotion by selling it just to recover something. Making it a million $ is awesome and he probably got a good gains from that. Anyway a lot of stories like this in the past. The lesson there is just risk whatever you could cause who knows what will be the aftermath of the market right.

[Plaguedeath]

Your mentor is lucky because the coin doesn't become a dead coin during bear market, there are a lot people become rekt after invest on shitcoins. I will say if you're looking for make money in long term, it's better if you start DCA ing Bitcoin because Bitcoin have been proven can survive during bear market for multiple times. If you want to trade for short term or small amount, it's no problem to choose pump and dump shitcoin.

[KingsDen]

The reason that you see many people shouting and lamenting that bitcoin and cryptocurrency is scam is because they have lost so much money in Bitcoin and other cryptocurrencies.

In Bitcoin it my not be a lost because it will definitely recover but as newbies they will immediately cash out at loss and say they lost all their money. In the other hand, so many shitcoins have stolen people's money for ever. Why this happens is because the mentors of these newcomers refused to tell them the truth about the crypto-currency market. That they can lose all they have if they are not careful but only tell them the positive side which does not happen every time and they will enter into the cryptocurrency indutry with the mindset of becoming rich the next month but instead their money will vanish,  that is why they have to call it scam.

It is nice to always tell people about the rules "invest what you are able to lose" because you can lose it in any second

[Vaculin]

The "invest only what you are willing to lose" thing" only applies if you're just a normie investor in my opinion. If you've done investing so much and you're already experienced enough to make smart decisions, investing money that you don't want to lose is totally fine — you just don't need to over-invest to the point that you'll end up being homeless if you lose.

This has a good point. It’s not all the time that we should only invest what we can afford to lose, because if that’s our basis, our portfolio will not grow and we will not be making huge profits after all. So instead, we should invest but must take calculated risk. Otherwise, if we continue all in investing without even gaining good returns even at once, we will surely be homeless in the end. But for a complete novice here, only invest on the amount you can afford to lose.

[capedbaldy]

Thats because he said that was nothing means he is ready to lose that 100k. Im sure he got depress over it when he see the $4k value during that time but got discipline to supress his emotion by selling it just to recover something. Making it a million $ is awesome and he probably got a good gains from that. Anyway a lot of stories like this in the past. The lesson there is just risk whatever you could cause who knows what will be the aftermath of the market right.

Anyone will be depressed because the loss of asset value is very large, imagine he has lost $ 96k in his assets but he is very lucky that his assets make a profit of $ 1 million, the profit is fantastic and he has to switch to bitcoin investment immediately bearish market prices for profits in the long term.

He probably has so much money that $100k is said to be ready to lose but the bad lesson is that he invested in shitcoins even though he finally made a profit but it was due to luck.

[KiaKia]

How can someone lost 96k? Did the bought all his coin at ATH? Because that is the only way this story can make sense, I have invested in this bear market and the lowest I saw my wallet goes was just 30% off, in his case that's 96% off, I am curious to know what went wrong, maybe he invested in altcoins that goes deeper like 90% down? No man could have survived that loss without zero worries, it is impossible.