Why you should use spare money to invest

[Sebas.tian]

One major reason that we should use spare money to invest is that we can be able to wait for our investment to mature and get huge profit from it.  If we use money that is not spare, we might end up needing the money for its purpose and ends up selling our investment prematurely.  It is ok if the market is surging but it would be devastating if the market is crashing since we cannot get our full investment if the market is plummeting when we sell our investment.

And it will also enable you to increase your capital, based on the income you achieved from your spare money you invested which is very important to invest what you can afford to lose in cryptocurrency investment. Many that invested all they have in cryptocurrency investment, always fall victims of selling cryptocurrency at any amount to solve problems at the moment, and it will make them not to achieve income than to experience regret because it's not their wish to sell premature but problems make them to do so. Those that used spare money in cryptocurrency investment, find it easy to get it right to win big income from their investment because they will have other money to solve any problem that may come their way just to be focus with the cryptocurrency investment.

[bayu7adi]

I think people who have experience in investing actually always have more mature financial planning and management than ordinary people who are new to investing. And even experienced investors know that they can only invest with money they really won't need in the near future. And yes, they also only enter into investments which of course they have analyzed and after seeing the potential, they decide to enter. In contrast to beginners who are sometimes lazy to do analysis. but they always expect a quick profit. and that's the mistake of beginners, namely not being careful at the beginning. Even though the first step is the step that sometimes determines the level of success at the end of the journey.

In investing, in my opinion, one's mindset plays a significant role in their success.

We know that beginners are bound to make numerous mistakes. I believe this is perfectly normal as long as they can learn from those mistakes. That's why it is highly recommended to start investing with discretionary funds and not with essential money.

As the level progresses and investment knowledge grows, it is advisable to allocate larger sums of money. We can gradually increase the investment budget by 3%-5% based on our confidence in investment knowledge. However, at this stage, we begin utilizing our savings. We must also learn to manage our savings using this method. The most important thing is to refrain from using funds that we will need in the near future. Hence, savings can become an appropriate source of budget.

BTW, I am not a financial advisor, but I personally apply this approach to my own investments

[bettercrypto]

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

Obviously it is not just better I think it should be obviously that before investing on anything everyone should learn the risk management , and earn some knowledge about the candle sticks then he should start his trial investing with some small amount. Then when he reaches a perfect level, he can increase or decrease the size of his investment fund as per his wish. And always Keep on your mind that , investment should be that much as much as you can afford to loose.

Yes, that's right! that's exactly how it should be, the problem is because others only get carried away by the hype of those who go into this field industry, in fact, you know what it means to say that others think it's easy to make money here. Which is not the case.

You should really study first and don't rush, and don't immediately look at how much you can earn, instead look for the knowledge to learn the moves and twists and turns here just like in crypto trading.

[Good_Doctor]

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.

You sound like there's actually anything like 'spare' money perhaps you don't make errors! Everyone who invest by trading in Bitcoin has capacities in which they can and nothing could be spare or small at some point due to difference in financial capacity of persons. Better you advice that don't hurry into Bitcoin investment without understanding the best time to buy any fraction of it!

For the risk management you're talking about... don't you think it will cost you time and money if you really want to study risk management you could take online courses too for that and not all are free. If the intention of the person is for long term trading rather than waste time studying risk management...after all it's not like we're managing money here it is better you said learn from experienced traders and know how to maintain if necessary little dip while you're still heads above water in the case of dip in the coin that when it' bulls again you'll have gotten enough gains!

Don't be afraid of taking risk just don't be insensitive to trends that has been existing in Bitcoin before investing in it!

[CapGelatik]

Using a portion of your savings for investment is a wise decision because it will be beneficial for you in the long run and will provide you with an opportunity for growth and increased earning. This will also reduce your risk of financial instability. However, it is important to diversify your portfolio.

True, it is a good decision and there is nothing wrong, the most important thing is to manage it wisely,
other than that you have to be prepared because investment certainly cannot be separated from risk, so that needs to be considered,
that's good advice by implementing a portfolio diversification strategy.

[Fuso.hp]

Using a portion of your savings for investment is a wise decision because it will be beneficial for you in the long run and will provide you with an opportunity for growth and increased earning. This will also reduce your risk of financial instability. However, it is important to diversify your portfolio.

We all plan for the future. Because the position we are currently in may change in the future. We usually save some part of our income to make that future better and not to be in danger in the future. If you save the amount of money you keep, you will get the amount of money in the future but if you invest a part of the savings, your savings have the potential to increase several times. So none of us should miss such a chance. Everyone should invest a part of our savings so that in future we can create a possibility of good amount of growth from that investment. Maybe many people will say that saved money is safe and investing money will be at risk, to them I will say that success is not possible without taking risks in life.

[Andrija Branislav]

Yes. Must be smart of course. All investments do not have inherent risk. it's just that our job is to minimize its potential by looking at the gaps that we might be able to use as a small investment strategy and at least we have to be smart and smart in managing let alone using reserve money which is only used at certain times and conditions for investing, especially crypto , very volatile. I think you know that too.
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[Jatiluhung]

I think people who have experience in investing actually always have more mature financial planning and management than ordinary people who are new to investing. And even experienced investors know that they can only invest with money they really won't need in the near future. And yes, they also only enter into investments which of course they have analyzed and after seeing the potential, they decide to enter. In contrast to beginners who are sometimes lazy to do analysis. but they always expect a quick profit. and that's the mistake of beginners, namely not being careful at the beginning. Even though the first step is the step that sometimes determines the level of success at the end of the journey.

In investing, in my opinion, one's mindset plays a significant role in their success.

We know that beginners are bound to make numerous mistakes. I believe this is perfectly normal as long as they can learn from those mistakes. That's why it is highly recommended to start investing with discretionary funds and not with essential money.

As the level progresses and investment knowledge grows, it is advisable to allocate larger sums of money. We can gradually increase the investment budget by 3%-5% based on our confidence in investment knowledge. However, at this stage, we begin utilizing our savings. We must also learn to manage our savings using this method. The most important thing is to refrain from using funds that we will need in the near future. Hence, savings can become an appropriate source of budget.

BTW, I am not a financial advisor, but I personally apply this approach to my own investments

I like how the investment planning that you describe. And it seems you are also quite experienced in investing. I personally only have a lot of experience in property or Real Estate investment. Whereas in crypto I've only just started a little over a year. So that sometimes my steps still need to be re-evaluated. And you are right that sometimes as a process goes on, our insights in investing will also become more mature. The most important thing is that we must know the risks and potentials that will be entered and we must be prepared with all kinds of risks that will be taken. So that we only use money within reasonable limits which will keep us financially safe even if we are not lucky in one of the investment instruments that we enter. Risk management and financial management along with financially sound allocation arrangements are urgently needed.

[bitzizzix]

Investment is indeed very important to guarantee a pleasant future or old age, but investing also has a risk that we must accept if one day it doesn't go as expected, but for the long term in my opinion the risk is very small, even non-existent and the most important thing is investing in the right place and also safe.
Using money that you can afford to lose or reserves is intended so that you are not too disappointed when you experience a loss, by setting aside money from money after you have prioritized needs, installments, savings, and for unexpected money. And you can invest the rest, and invest what you can gradually, much better and for the long term.

[xSkylarx]

Using a portion of your savings for investment is a wise decision because it will be beneficial for you in the long run and will provide you with an opportunity for growth and increased earning. This will also reduce your risk of financial instability. However, it is important to diversify your portfolio.

True, it is a good decision and there is nothing wrong, the most important thing is to manage it wisely,
other than that you have to be prepared because investment certainly cannot be separated from risk, so that needs to be considered,
that's good advice by implementing a portfolio diversification strategy.

If you really want to earn profit or extra income aside from your salary, then taking a risk with investment is really best, but again, before that, you should have extra money on it, or else you won't be able to save and invest. That is why you should manage your money well, like don't spend on nonsense stuff and also don't go over your budget because you'll end up ruining your budget plan. But again, no matter what our plans on budget are, if your income is too low, then that is really difficult, so it is better to find a way to earn money, or if you receive work bonuses, then that is a good for investment.

[G_Besar]

Obviously it is not just better I think it should be obviously that before investing on anything everyone should learn the risk management , and earn some knowledge about the candle sticks then he should start his trial investing with some small amount. Then when he reaches a perfect level, he can increase or decrease the size of his investment fund as per his wish. And always Keep on your mind that , investment should be that much as much as you can afford to loose.

Investments must be made in accordance with the abilities we have, because that is part of a very unique job and is highly recommended if someone wants to make their future brighter. But it is clear that basically everyone has to study risk management first before doing it because starting a job without understanding the risks would also be ridiculous. Why is that, because risk is part of the challenge that must be understood so that someone does not have obstacles when starting to invest in something.

It teaches you to take risks that you will experience in the future. if you cannot take this risk, It already means that nothing will happen in the future. many things you have to take from all your choices.

Taking risks is indeed mandatory, but everyone is also highly recommended to understand it first before starting to take it because if someone is willing to take risks, but basically he still doesn't understand how these risks are. I think that is also a very ridiculous thing, because taking a risk is not only related to one's courage, but also very much related to the knowledge that one must have. So talking about the future, of course you also have to talk about knowledge because that is the basic path to a better future.