The idea of investing no more than you can afford to lose is the same as making sure that you are investing within your discretionary income and not using money that you need for expenses. Also bitcoin is not guaranteed to be successful, so everyone should realize that he could lose up to 100% of what he puts into bitcoin. Surely no one invests into bitcoin (or anything else) or even engages in trading with any intention to lose, yet they still need to account for the possibility that they are not using money that they need for their expenses whether expenses in the coming month or two or even expenses down the road.
That’s true eventually as, the idea of how Bitcoin investments should be approached and I agree on the not having a 100% guarantee on it but, it has some guarantee none the less, especially when compared with the many altcoins out there. Bitcoin has more proven guarantee then the lots of them, deeply rooted in its price history and how it’s carried despite many critic and attacks.
Yeah the history of bitcoin has proven it to be a great asset and as such the chances of one gaining profit or say it’s price growing over a longer term period is actually high but still that in no way guarantees everything will turn out just perfect, bitcoin is volatile even though not as exaggerated by some because it’s volatility is decreasing as the price grows but still the doesn’t takes away the risk in it and the best way to manage risk in financial markets is to have proper money management. You can’t simply because bitcoin has in the past grow then go ahead to borrow money and invest or even invest more than you enough. The market could be in bearish period until when you predict to take profits even if it is a long term, the chances might be slim for it to happen but the chances are still there.
Another reason again to invest what you can afford to lose is simply to be able to control your emotions and not mess with your psychology during periods of dips, someone who has invested a huge amount of money beyond what they can afford to lose wouldn’t have the Same calmness like the who invested base on his risk capabilities.