Investing What You Can Afford To Lose Wasn't A Joke

in #hive-1679222 years ago

With the bear market hitting hard, many folks who got into cryptos with the mindset of grabbing a couple bucks are beginning to realise how serious things could be in this space. I've personally seen people publicly ranting about how crypto seems to be their worst investment ever. They got into cryptos last year when the bull market was at its peak with hopes of having a taste of all the abundance and fun many folks were experiencing. Alas, things have gone south since the day most of them invested and they've simply been watching their portfolio crash so hard.

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Many folks seem to forget one of the most rule of investing in cryptos, the rule of investing only what you can afford to lose: Investing money you can afford to let go and not looking back. Yeah, that rule isn't really ajoke from one of Kevin Harts stand ups, it's the real deal and with the situation of things right now, this rule applies to everything crypto, from Stablecoins to NFTs and every form of cryptocurrency.

Not sure if greed or hope was the the main reason why most folks invest so much in cryptos and lament about how the loss of the money invested has made their world crumble. Of course no one likes to lose money, it's really not something humans were designed to be happy with and so it's quite important to find ways losses can be minimised most especially by avoiding losses that could have a ripple effect on our lives. I've learnt about people investing in cryptos with loans and funds gotten from other people and it's really crazy what cryptos make people do, but it's purely greed sometimes.

Investing is simply a way to make your money work for you and give you passive returns, with cryptos however, there's alot of risk involved when investing and it is really not a very logical act to invest an amount of money that would cause havoc in our lives if there's a cases of an investment gone wrong which is quite popular in the crypto space. "Invest what you can afford to lose" seems to be my most common phrase right now when talking with newbies who ask about cryptos. Investments with massive risks are the reality of the crypto space and one rule I stick to till this day is investing what I can afford to let go in case of a catastrophe.

Please note that my articles are not a financial advice and are solely my thoughts from analysis and experience. The cryptocurrency market is extremely volatile so please do your due research before investing in any cryptocurrency.

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wise words very very few live by

So true.

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Its simple, most of us ignore the instructions on an exam paper until we fail the paper.

Yeah, then we complain that the lecturer wasn't kind...hopefully many people learn to understand how cryptos work and better ways of investing in it

Investing in crypto with borrowed money from others or taking a loan from a bank can be a disaster. When the crypto market is at an all-time high, there is a lot of talk about that. New people get involved in cryptos, and most of the time, they do not have a good experience because they bought the top.

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The bull market kinda gives a false impression of what cryptos are to newbies. Many think cryptos are a get rich quick scheme until they begin to see what cryptos to are and what long term holders have to endure to reach the stage they got.