Those who put small money into crypto, take out big money and vice versa

[JoyMarsha]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

The rule from where? Say what you know than trying to confuse yourself not others with things that is not comprehendible to ascertain as possible thing to think of, to happen for someone who invested in crypto(like Bitcoin) with little money will stand to get big profits than those who had invested with big money in Bitcoin.

How do you explain that to those who are investing with huge money, and they are investing for long term, not for short term that they intend to sell off their Bitcoin at whatever price they see at the short time they want to sell their Bitcoin

[JaanusRaim]

Investors are usually profitable after investing even for little, but Bitcoin doesn't give huge returns in a short duration, and your profits also depend on the size of your investment.

But, I am getting OP's point with respect to emotions and long term benefits:
If you have invested little which is almost nothing to you if happens to lose and because it is nothing, you can hold for years and in long run, you are profiting bigger.

At the same time, if you invest half of your networth or big fund with leverage into bitcoin, you will be unable to hold against market fluctuations and due to interest burden. It all means, role of your emotions is vital here. If you are calm when bitcoin drops even up to 80% from the peak level, you can profit bigger than your initial capital. If not, you may sell off your positions at wrong timing.

Exactly!
The test could be as following: "Imagine that the price of the crypto asset you invested in is only 0.1% due to reasons you have not detected yet (for example the Litecoin price fall from 80 USD to 0.08 USD) one sunny morning! What do you feel?
Are you excited, eager to exploit the wonderful opportunity, enthusiastic to find out what happened and has the fundamental value of that asset changed - acknowledging that your salary and other monetary resources have achieved tremendous purchasing power in terms of your favourite asset overnight.
Or are you depressed, ready to leave the crypto market and judging all cryptocurrencies as a scam, loosing interest on the ratio between the price and (fundamental) value of your (ex)favourite asset (as Warren Buffett once said: “Price is what you pay, value is what you get.”)?"

Please take this test and find out are you overinvesting or not!

[Cyber_warrior]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

I don’t really agree with what you said. If you are not putting anything into investment, then how will you be able to make huge profits? Even little profit the person won’t be able to make, if you want to make money from investment, then you will have to invest your money. You might invest small and win big, I know thats possible, because even people that invested little amount in bitcoin when it was created will be in massive profits right now.

If you are investing, then you should plan on holding for long term, so you are not even suppose to use everything which you having to invest, you are suppose to invest with what you can afford to lose, and any amount which you won’t be using within a short period of time. It’s completely wrong to take a loan just because you want to invest, when investing don’t always be in rush.

[Rockstarguy]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

Have you ever tried to do some research about what you think you know if what you think is right? If that is so then people wouldn't be bothered to accumulate more bitcoin,  the small amount they already have would have been enough for them. In bitcoin the more you invest to bigger the return of profit, this is why DCA method is one of the strategies investors use in accumulating Bitcoin.  Try to make your research first so that you know what you are saying .

[aioc]

because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

That is, if he happens to pick the wrong coins to invest in and is not comfortable losing his money, it is never advisable to invest borrowed money, because you can't tell when the market will dip or surge.
Forced to sell or cut losses because you need to liquidate is something that investors and traders don't want to happen to them, so you need to plan your every move, short-term or long-term.

[Adams0001]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

That's why we said that we should only invest money that we can afford to lose, so that you won't force to sell at some point. But in any case, it's a good investment, you just have to learn when to invest at the right time and just go on hold on it for a long time. Look for the bigger picture and just be patience of buying in DCA method so grow your stash. At least invest in the long term, or one full cycle of it so that you will understand the worst and best time of it. Also it added that mental toughness and it could make you even more appreciate how Bitcoin investment is in the long run.

People that need fast money are does that invest any among that they are not supposed to used to invest they will used it and think if they will get huge money easily or getting double of there money. That is why DCA method is involves any investment you will do in crypto if you can be using this strategy that can probably minimise your risk and still get profit when the market pump well. If you invest in crypto in small amounts if is long term you will surely get profit if you are investing in the real coin like bitcoin that will surely give you profit but he will be difficult to get huge returns if you invest in smaller amount because the way you invest that is how your profit will be. People that invest huge amount will get high returns more then you that invest with small funds.

[Renampun]

What do you think ?

If that's the case, so what about those big players who put more of their money in the crypto market and have already earned high returns? how can you explain this? so if you think that people who put a little money they will get a lot from the market, and people who put a lot of money they will get a little it's just a mistake, the return percentage is the same for everyone, respectless of investment size, the only difference is the strategy, because everyone has a different approach, and this is what can differentiate returns from one investor to another.

[Shadiq]

Investing less money does not mean getting big profits, but investing with less risk. Those who invest with more money are investing with more risk. When the market is in an unfavorable situation, big investors suffer more, while those who invest with less money suffer less. The same thing happens with profits.

In the case of long-term Bitcoin holding, if you continuously invest with less money, the amount of principal will eventually become much larger, which can be more than if you invest a large amount at once. Your statement is not clear, so your words may carry a different meaning.

[dunfida]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

That's why we said that we should only invest money that we can afford to lose, so that you won't force to sell at some point. But in any case, it's a good investment, you just have to learn when to invest at the right time and just go on hold on it for a long time. Look for the bigger picture and just be patience of buying in DCA method so grow your stash. At least invest in the long term, or one full cycle of it so that you will understand the worst and best time of it. Also it added that mental toughness and it could make you even more appreciate how Bitcoin investment is in the long run.

People that need fast money are does that invest any among that they are not supposed to used to invest they will used it and think if they will get huge money easily or getting double of there money. That is why DCA method is involves any investment you will do in crypto if you can be using this strategy that can probably minimise your risk and still get profit when the market pump well. If you invest in crypto in small amounts if is long term you will surely get profit if you are investing in the real coin like bitcoin that will surely give you profit but he will be difficult to get huge returns if you invest in smaller amount because the way you invest that is how your profit will be. People that invest huge amount will get high returns more then you that invest with small funds.

People who invest small amounts never face pressure to sell while people who throw huge money into crypto usually panic or get forced to exit when the market drops. small investors can wait calmly because the money does not affect their life but someone who puts in a big part of their wealth cannot handle long drawdowns and ends up selling at the worst time. this turns the whole idea into a cycle where small money survives and big money gets destroyed.

That is why the advice invest only what you can afford to lose keeps showing up because it protects you from being forced into a bad decision. when the money you invest is not needed for anything else you can hold through dips buy with DCA and wait for the cycle to play out. this long term view builds patience and helps you understand how Bitcoin behaves in both good and bad times. People who want fast money are the ones who usually break this rule because they invest funds they should not touch thinking crypto will double it quickly. then when the market dumps they panic and sell because they need the money back. DCA helps reduce this risk since it spreads the buying and lowers the emotional pressure but the mindset behind the investment matters even more.

[mrust_mobile]

Putting bit money makes you nervous especially during downmarkets and as your anxiety rises, you make stupid decisions and sell your coins right at the market bottom. That’s how your big money becomes small money.

If you put small money and forget it, 10 years later it will become huge money. But there is a problem here. You forgot about it. That means you don’t know where your private keys are. What was your wallet password? Have you formatted your disk? Was it in a usb disk? Were you keeping your coins in a crypto exchange? Is that exchange still operational?

As you see, one can invest small or big money and end up losing all of it. That’s because each of these decisions trigger their own set of risks and unless you have faced them before and know exactly what to do, you’ll get hammered by them.

[Ndabagi01]

The cryptocurrency market won’t favor everyone whether you invest into it with small amount or big amount. When the outcome is coming, it is usually a mix outcome of all. The cryptocurrency they’ve invested in now depends on how volatile it was to have moved the price upward or downward. Your theory is not practical enough and it is good to keep a closer view on activities surrounding what you’ve invested into, you could lose it at anytime or you could make a lot of money from it also, just depends on your stance and how fast you’re able to take advantage of the market.

[YOSHIE]

because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

That is the importance of managing financial management, so that you can truly achieve passive profits in crypto investment.

If investing money from loans from banks is bad speculation, that is the importance of using money to invest excess money, for example the income and expenditure of funds are real, if the income is more than 2% that is the money that is actually used for investment.

The crypto market is not the same as the market in general, the nature of crypto currency really poses real challenges for an investment person, if it is not studied properly, of course we will do as you say, detail your expenses and income, before investing activities.

[palle11]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

What I think is that , the difference is knowing when to invest. If you feel you are a money bag with deep pockets and you invest wrongly of course you will not benefit from it. For example if you buy a coin at its peak at $1.50 when it has already done ATH, you should expect it to start dropping anytime soon, meaning such buy is a wrong buy. You won't compare someone who has small money and buying more units from buttom @ $0.02 (of same coin), he or she must profit reasonably and will be very willing to dump his hodling at the range of $1 even before the coin starts to drop. So that is the investment sense in it. To invest at the right time is profitable than jumping in at any time.

[EarnOnVictor]

-Snip-
What do you think ?

Perhaps you didn't explain it well. All possibilities should be prepared for in the world of cryptocurrency. Some people have invested big money, and some a little, while some invested nothing. Yet all of these categories have earned/been rewarded huge returns across the space. To those who invested nothing at all, it might be that their efforts rewarded them crypto in one way or another. It happens.

Then here comes other set of people too who had invested nothing, little or big in cryptocurrency, but have little or nothing to show for it. That is cryptocurrency for you. The right choice of investing (crypto asset(s)) and the right time (price) can't be overemphasized.

[Rampagoe004]

The cryptocurrency market won’t favor everyone whether you invest into it with small amount or big amount. When the outcome is coming, it is usually a mix outcome of all. The cryptocurrency they’ve invested in now depends on how volatile it was to have moved the price upward or downward. Your theory is not practical enough and it is good to keep a closer view on activities surrounding what you’ve invested into, you could lose it at anytime or you could make a lot of money from it also, just depends on your stance and how fast you’re able to take advantage of the market.

It is true as you said those who have made big profits now of course they have invested in such detail so that every moment can be utilized well, and not a few also experience losses because they are too hasty in investing without first looking at the graph that occurs, so not all that is invested can make money and they also have to be patient so that maximum profits can be felt, many beginners are trapped in investing because they only know with small capital but can make a lot of money of course this is a wrong understanding in investing, so everyone has their own way and also has risks so learn first how to invest and never follow the crowd.

[Fullcoinese]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

It will depend on the chosen crypto asset. Using a small amount of money or a larger sum to invest in crypto is an option. It all depends on your understanding of the right asset to choose. If you pick the wrong asset, it doesn't matter whether you use a small amount or a large amount of money, everything has the potential to be lost. Strive to be wiser in determining which assets and the amount of money you will invest.

[promise444c5]

Whoever invested a large portion of their funds and withdrew little was likely a result of having no plan or looking for short-term money, which is essentially gambling, and they ended up panic-selling because of a dip. You can leverage borrowed money, but without a plan on sustainability and payback, you will end up losing on both sides.

Btw,I’m not talking about crypto at large,because I can’t speak for anything beyond Bitcoin..they will eventually disappoint.

Let me give you a scenario: I have a friend who has a lot invested into altcoins (Matic(now polygon)had a large percentage of his holdings) and was in an average loss of $15k to $20k. I managed to convince him into buying and holding BTC, and luckily he bought with around 80% of the remaining altcoin holdings during a Bitcoin market dip. He was able to recover around $13k within six months. I then told him he could just keep buying dips if he can’t DCA and continue holding, but in the end, he ended up transferring a huge chunk back into altcoins behind my back. He later gave me a call about how nicely it was appreciating.. but now he’s back into loss, and as for me, I have zero advice left for him.

[7juju]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

I think you are just making up unverified story, what if before the bad time comes the person that put big amount has already cashed out big and he is not holding that crypto at the time that the coin is experiencing bad time will he still go out with small amount or nothing? So there is no rule like what you are saying. If you check bitcoin today those who has invested big are still in bigger profits than those who invested small or is bitcoin not part of your case study? And one thing about bitcoin is that the bad times don't last forever, so to avoid panic selling don't invest borrowed funds or money you considered too big for you to handle should there be a downtime in the market.

[As-Soon-As]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

That is why I say that those who hold Bitcoin for a long time are the only ones who invest a small amount of money and gain a large amount of benefit. Only by holding it for a long time and using a regular strategy can they achieve success. However, those who trade for a short time are the only ones who are more likely to lose money, so if you follow the Bitcoin DCA method and invest for a long time and buy Bitcoin weekly, this will be the most suitable strategy. And Bitcoin investors have the highest chance of profit. If you want, you can definitely stick to long-term holding with Bitcoin investment, which will greatly increase your chances of profit.

[Donneski]

The rule "Those who put small money (or nothing) into crypto, take out big money - those who put big money into crypto, take out small money (or nothing)" seems to be true both objectively - because it is much easier to invest small amounts due to market illiquidity, and subjectively - because the person who have put the great proportion of his wealth (or even borrowed money) into crypto is often forced to sell in bad times.

What do you think ?

To large extent, I agree with the rule. The people who usually make big returns are the ones who invested small and just forgot about it. Because the capital is small, they don't stress, no panic and no forced selling.

But the moment someone goes all in, they become emotionally tied to every candle and once emotions get involved, bad decisions follow. So yes, I think the rule seems to hold because small money gives you peace and peace gives you time while time is where the real profit comes from.