Are you investing from the little you have just so that you can preserve it from losing its value, or are you investing from the excess that you have so that you can have some for tomorrow? What is your major intention for investing Is it to make profit first or to prevent what you have from losing value? I know you may be wondering the difference, but the difference is that if your intention to invest is to make profit you will be concerned if what you've invested has not yielded any profit whatsoever, but if your intention to invest is to preserve the value of what you have already then you may not really be concerned if Bitcoin does not increase in value, your only concern will come when the value starts dropping rapidly, but if its value remains the same you will be okay.
In an economy like the one we're currently in here in Nigeria where inflation keeps reducing purchasing power and the local currency keeps weakening, simply leaving money idle often feels like taking a guaranteed loss. So, buying Bitcoin isn't always about getting rich quickly; sometimes it's about trying to stand still while everything else is losing value. In a simple words; I'm investing to preserve what I have from losing value- I'm not even thinking about profits at this point.
This is the reason why I tell people that are always profit centered about their bitcoin investment that they shouldn't look towards that direction now because the market is volatile of which is it not certain that the price will increase after purchasing, therefore what they should be concerned about is how to save their money from inflation first because due to the economic downturn, it is useless to keep money in flats because rather than gaining value, it loses value overtime. This is not a time to evaluate the profits that can be made from our investment but how to maneuver the economic crisis and become smarter in the near future.
The real challenge is that many Nigerians are investing from money they can barely spare rather than genuine excess income and there's a price hit, the impact hits harder.
That is the problem because investing an amount that we cannot afford to lose will cause emotions in bear seasons like this and there is every tendency of selling off to attend to emergency needs. Investing with a discretionary income is very important because it is an amount that is left after major bills has been sorted out, so it helps us to manage our finances without having to worry about the one we used for investment.
