Why you should use spare money to invest

[LogitechMouse]

There is no need to risk even small money as a newbie, for experience it is better to use a demo trading account. Once you are confident in making profitable trades, then you can use your spare money.

The demo only helps you to understand some trading features, it will not help you make the same profits when you enter a live account.

Investing and trading is a risky activity, so if you are too paranoid about the risks that exist then please do not trade or invest. To become a successful investor and trader to earn returns, you must consider the risks even if you have to start with a small budget. Do research, learn more and gain experience.

Speaking of Demo accounts, the feelings also is different. In trading using a demo account, you can risk more money because it's a demo only, and the money that you have on that account is just fake. On the other hand, if you are trading using your real money, the feeling is also different as well. I've tried using both already, and I can say that your feeling when using both demo account, and a real account with real money really is different.

I will just add to what you said as well. I've seen newbie investors, and newbie traders out there who are getting overwhelmed because of the lack of information that they have, and because of that, they will just make some decisions base on their emotions, and not on the knowledge into the particular investment that they want to invest their money with. Like you said, do their own research, and if they find a mentor when they're just starting then it would be better because they will make your learning a bit shorter comparing to other people (like me) who did self-study thus, it took me longer time to learn everything (the basics).

Re: Why you should use spare money to invest

This is a very subjective question.
What if many people here are like me who has the knowledge already, but don't have spare money? So you are saying that we will not invest anymore?

I already know the basics already when it comes to investing, but I'm not using spare money whenever I'm investing, but I'm using a portion of my salary to invest. That isn't consider spare money for me. On the contrast, I'm only investing on the safer assets because like I said, I don't have spare money.

[Halime Anatolia]

Good advice. it tastes bitter and sweet indeed if you invest in this crypto world. especially when we entered, the price wasn't really low, but once we corrected again, the price that we thought was the lowest became the highest. For nominal entry I think variation. it's true, like you said, if it goes down in value for stress, but in the crypto world, to estimate a large return on investment, you inevitably have to have sufficient funds to enter the market.

[Shamm]

Good advice. it tastes bitter and sweet indeed if you invest in this crypto world. especially when we entered, the price wasn't really low, but once we corrected again, the price that we thought was the lowest became the highest. For nominal entry I think variation. it's true, like you said, if it goes down in value for stress, but in the crypto world, to estimate a large return on investment, you inevitably have to have sufficient funds to enter the market.

Investing in crypto Then you must know the risk it because in the world of crypto especially bitcoin the price is volatile which means you cannot predict every seconds of the price which is sometimes it will goes up and sometimes it will goes down. So you must control your self and stay focus on your goals even though there's a time of decreasing the price bit one thing for sure in the long run it will give you a good profit.

[Questat]

Good advice. it tastes bitter and sweet indeed if you invest in this crypto world. especially when we entered, the price wasn't really low, but once we corrected again, the price that we thought was the lowest became the highest. For nominal entry I think variation. it's true, like you said, if it goes down in value for stress, but in the crypto world, to estimate a large return on investment, you inevitably have to have sufficient funds to enter the market.

Our main goal why we are investing in Bitcoin is to earn money and multiply our capital. Even though it was just our spare money, I know nobody wants to lose them all like we don't care about it, of course, we feel hurt and disappointed. Though we can say that crypto investment is risky, still is not enough to think that we should just use our spare money, instead find a reason why we have to protect and grow it.
I encourage you not to think about the large return when investing in crypto for this will lead you to get out of control and take away your (spare) money too easily.

[Luzin]

Investing in crypto Then you must know the risk it because in the world of crypto especially bitcoin the price is volatile which means you cannot predict every seconds of the price which is sometimes it will goes up and sometimes it will goes down. So you must control your self and stay focus on your goals even though there's a time of decreasing the price bit one thing for sure in the long run it will give you a good profit.

Not all cryptos are safe for the long term. Look at the many token coins that died, they had a good history but were not able to survive until recently. Only a few big coins are currently holding well, one of which is ETH, it has been around since I was trading in 2015.
Forcing the use of borrowed funds or basic necessities is very bad, other alternatives use spare money that is not used and ready to be lost.  But it is very rare for people to think this way. They even use basic necessities funds to invest.

[Peanutswar]

There is no normal being that loves getting losses on business, career, investment and trades that's why even company holders make financial policies to keep record of investment and profits flows. And unlike other business bitcoin also makes sales and losses if you do not investment wisely....is nice when you put in what can not put you sickbed or gives you hypertension, don't invest out of what you cannot withstand the loss.

Is better to use small money or learn risk management first before investing especially newbies.

Life is full of risk so why keep sticking to the playing safe way, people with a higher risk to their selves has the higher chance to get their life more better because they always grab the opportunity if there's any to take a risk and make more earning the same way in investing you don't let your money keep sleeping on your banks, instead use your money to earn more money into you so you can gain profit while you doing another way if income, keep riding in the market volatility and grab the opportunity. The higher the risk the higher the profit, invest what you have. Not all the time you will win in the investments.

[BITCOIN4X]

~snip

Investing in crypto Then you must know the risk it because in the world of crypto especially bitcoin the price is volatile which means you cannot predict every seconds of the price which is sometimes it will goes up and sometimes it will goes down. So you must control your self and stay focus on your goals even though there's a time of decreasing the price bit one thing for sure in the long run it will give you a good profit.

All crypto prices fluctuate and you cannot can't exclude one.
The source of the investment budget must also be considered before someone does it, especially to avoid things that can damage their investment plan. For me the savings and reserve funds are different, both are planned for something different.

Reserve funds are funds that you should be able to use to cover expenses you need if your savings fund cannot meet those costs. You can't use the reserve fund as long as you have savings, meaning it's not a priority fund to use even if you have an interest in investing. Use reserve funds to help you in difficult financial situations, when you have no other options or something.

[puloweh555]

There is no normal being that loves getting losses on business, career, investment and trades that's why even company holders make financial policies to keep record of investment and profits flows. And unlike other business bitcoin also makes sales and losses if you do not investment wisely....is nice when you put in what can not put you sickbed or gives you hypertension, don't invest out of what you cannot withstand the loss.

What must be known first is the principle of investing, especially in the cryptocurrency industry. We must ensure that we only invest money that we can afford to lose, as this is important for a good move in protecting our significant financial losses. Although investing in cryptocurrencies has high profit potential, there is also considerable risk due to market volatility and uncertainty. I think we must continue to follow this principle and continue to maintain it so that we can minimize losses.

Is better to use small money or learn risk management first before investing especially newbies.

These two points are actually very good and should be a guide. As a beginner, you really have to start by using small money and learning risk management is the best and wisest approach to investing, especially for beginners in the investment world.

[Davidvictorson]

Is better to use small money or learn risk management first before investing especially newbies.

Be responsible with your investment. Try as much as you can to not be move by your emotions but by logic through informed decision before investing in bitcoin. Not everyone may have spare money to use for investment so before you use your savings try and ensure that you have a back up plan or a proper risk management strategy to keep you going incase there is a delay in the return of your investment or the market crashes.

[Franctoshi]

Not everyone may have spare money to use for investment so before you use your savings try and ensure that you have a back up plan or a proper risk management strategy to keep you going incase there is a delay in the return of your investment or the market crashes.

And in such a situation whereby you aren't investing with spare money, one should ensure that the money to be invested isn't going to be needed or used within a short period of time, in case the expected time of return on investment elapses and you haven't realized any profit, you would likely get disappointed and maybe be on pressure or forced to liquidate your asset at a lose.

[kawetsriyanto]

Investing in crypto Then you must know the risk it because in the world of crypto especially bitcoin the price is volatile which means you cannot predict every seconds of the price which is sometimes it will goes up and sometimes it will goes down. So you must control your self and stay focus on your goals even though there's a time of decreasing the price bit one thing for sure in the long run it will give you a good profit.

It is not only in crypto, we must know the risk before we invest in anything. No investment has no risk, even Gold price also fluctuates although it doesn't fluctuate so much. By the way, I assume Bitcoin is one of the safest crypto coins for investment. Sure, it price fluctuates but the price history is clear and it proves that Bitcoin can survive very well in crypto market. Even people call Bitcoin as the mother of crypto coin, which means Bitcoin is like the main coin in crypto. So, actually we don't need to be so worried to invest in Bitcoin, especially for the long-term holding.

[kamvreto]

Investing in crypto Then you must know the risk it because in the world of crypto especially bitcoin the price is volatile which means you cannot predict every seconds of the price which is sometimes it will goes up and sometimes it will goes down. So you must control your self and stay focus on your goals even though there's a time of decreasing the price bit one thing for sure in the long run it will give you a good profit.

It is not only in crypto, we must know the risk before we invest in anything. No investment has no risk, even Gold price also fluctuates although it doesn't fluctuate so much. By the way, I assume Bitcoin is one of the safest crypto coins for investment. Sure, it price fluctuates but the price history is clear and it proves that Bitcoin can survive very well in crypto market. Even people call Bitcoin as the mother of crypto coin, which means Bitcoin is like the main coin in crypto. So, actually we don't need to be so worried to invest in Bitcoin, especially for the long-term holding.

I will also be of the same opinion as you, Bitcoin is the Mother Of Crypto and this is safer for long-term investment even though the price fluctuates. But considering bitcoin's good history, this investment will not disappoint those who are patient and wait until Bitcoin reaches a new ATH. there is nothing to doubt about Bitcoin, except that if you hold Altcoins it will be more risky to lose more. Using spare money to invest would be better used in Bitcoin.

[macson]

Investing in cryptocurrencies, especially bitcoin, will never be easy, but with careful planning and mental readiness, investing in bitcoin will never make a loss.  the purpose of an investment is profit, but do you have to put all your money into it, of course it's risky, determine how much you will invest, and save the rest for your emergency fund when your investment doesn't go according to plan.  as someone who is active in investing, there are many stories that can be used as lessons at this time, even i always have discussions with some of my friends when i want to invest in something, i have to get into detail about whether the risk is greater than the profit that will be obtained. 

[KingsDen]

The general advice in every volatile investment is for you to invest what you are able to lose and that same advice applies in every type of investment. I do not think that there are people who invests all they have in one asset.
This is where the idea of diversification comes to play. You invest in more than one place and there is a rare situation that all the investments will go wrong at the same time.

[isaac_clarke22]

Sometimes extensive research and FS are overkill if you know that the coin/token/project is just shit.

That's just the point! Sometimes I want to compel myself to believe that most people forcefully expose themselves to be scammed. Everyone has guts feeling that alerts us of something but truth remains that sometimes we want to ignore it and do the permissive, especially when our minds are already made up to do it. In trying to go ahead we conjure up all sorts of "what if". Frankly, there are projects with scam well written over them without anyone digging an inch into them in research as to whether they're genuine or not. Yet there are people who still invest in those projects. How such projects get those they scam is a wonder to me.

True. If not due to desperation, it's possible that they are just not that patient to buy the usual like Bitcoin and they're just doing it all in scam projects with the hopes (although hopeless) of still something to squeeze their money out.

For me, it's either Bitcoin or nothing else. I might consider ETH, but I am not considering other coins just yet.

The general advice in every volatile investment is for you to invest what you are able to lose and that same advice applies in every type of investment. I do not think that there are people who invests all they have in one asset.
This is where the idea of diversification comes to play. You invest in more than one place and there is a rare situation that all the investments will go wrong at the same time.

Yep, that's pretty much the play. Not sure why people tend to go far on doing loans just to invest it in crypto. Those are the money I want to be able to pay back at the end of due. In a volatile market, that's not going to end really well.

[Gladitorcomeback]

There is no normal being that loves getting losses on business, career, investment and trades that's why even company holders make financial policies to keep record of investment and profits flows. And unlike other business bitcoin also makes sales and losses if you do not investment wisely....is nice when you put in what can not put you sickbed or gives you hypertension, don't invest out of what you cannot withstand the loss.

Is better to use small money or learn risk management first before investing especially newbies.

Profit and loss are connected with every business. Whatever business you do, you do it with the intention of making profit. No one ever invests in any business with the intention of loss. It is certain that wherever one invests without thinking, there will be loss.

Any business is always started from a small level and scaled up after gaining experience and understanding the market. Since the crypto currency market is a very volatile market, the prices are not always the same but always go up and down. This is the reason why always invest money here that is more than you need. Maybe when you need money and you want to withdraw your money, the market prices have fallen and you have to make a loss.

[Mpamaegbu]

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For me, it's either Bitcoin or nothing else. I might consider ETH, but I am not considering other coins just yet.

It's not as if I don't have investments in altcoins. Of course, I do. I've an appreciable amount in altcoins and I do believe that on the short term altcoins give better ROI than Bitcoin. However, anyone investing in altcoins should be extremely cautious. For newbies, they should avoid alts investment totally if they can. The point I laboured to draw out there in the other comment is why would anyone intentionally invest in obvious Ponzi projects and the feelers I get is because of the mouth watering packages or returns these projects promise the public.

[nakamura12]

True. Demo account only helps a beginner trader becomes more familiar on how the market works so he can anticipate on how he’ll take advantage on it. But it does not guarantee that whatever your outcome using demo trading will also be highly possible when you are already trading in the real trading scenario. Trading is unpredictable, and so the market is. That’s the reason it’s more advisable to use spare money every time you trade since trading result is always unpredicted, and once you lose, that’s totally a loss in your funds.

No one will know the outcome but the purpose or goal of using demo account is to make yourself familiar with it and will help you learn about investment before you use the spare money rather than using spare money and when you start investing then the money you will have left is not the spare money if ever you lose it all.

[livingfree]

Profit and loss are connected with every business. Whatever business you do, you do it with the intention of making profit. No one ever invests in any business with the intention of loss. It is certain that wherever one invests without thinking, there will be loss.

There goes the first time businessman that have been lucky to have it the profitable way but majority is expected to set a loss. That's how business goes and that's to be expected whenever you start one. Because it's full of uncertainty even if you know what you're doing.

Any business is always started from a small level and scaled up after gaining experience and understanding the market. Since the crypto currency market is a very volatile market, the prices are not always the same but always go up and down. This is the reason why always invest money here that is more than you need.

You said the opposite, invest only the money that you don't actually need which is just like a spare money for you.

Maybe when you need money and you want to withdraw your money, the market prices have fallen and you have to make a loss.

This is the good thing on this market, there's no lock period unless you avail those exchanges and wallets staking features that your asset will be locked for a certain period of time.

[Dr.Bitcoin_Strange]

Just as you have described, whoever decides to invest in something that will give them hypertension or put them in a sick bed is basically paying for their mistake. For every mistake, there are consequences that must be paid, and for every successful business or investment, there was also some price that was paid by the investors, no matter how small or demanding those prices can be. I know some people who lament the big losses they are facing in crypto because they have no idea that's how the market can be. So people practically throw away their money just to invest in some altcoins that can turn shitcoins in a short period of time, and at the end they cannot withstand the pressure they will be facing from those investments they made without knowing how truly the crypto market works. I usually say to people, "Let them always know a lot about any platform, system, or project they are putting their money into before they go ahead with the plans, and also let them only put in the money that will not affect them if the investment ends in a bad way."