"Only invest an amount you can afford to lose."
Probably one of the most common pieces of advice I've heard when it comes to investing in bitcoin, and I've used it a lot of times too. But honestly, in our current situation where fiat is getting printed like hell, I started to use that statement less and less. It just seems that holding bitcoin is now totally necessary.
Don't get me wrong, we should still be heavily educating people when it comes to proper investing in general with DCA-ing and probably not going all-in on one go and stuff, but I think bitcoin is a lot less risky of investment now compared to the past few years despite it still being volatile.
Thoughts? Opinions?
I still apply the same advice because no matter what we think of crypto, it's still volatile and has risks so I would rather invest the money that I could only afford to lose so I wouldn't have regrets in the end. If we'll put all our assets in crypto without thinking about the risks, it might affect our current financial status, or worse, we might have losses that would have a huge impact on our financial stability.
This is one of the best sayings that can exist, not only for investment, that saying applies to gambling, when we are trading and have large capital, it is always good to do adequate risk management for our economy, that is, , for me of 100% I only risk losing 20% of it, and that 20% is what I put to trade and I can divide it in the way I want, managing that 20% in at least 3 trades, within which I do not allow myself to put a stop loss that is above 10%, that is how I manage the money and what I am allowed to lose.