Capital management is one of the most important skill everybody should have
Especially in the current world.
"Cut your coat according to your size " A strategy might work for another doesn't mean it would work for the other.
Capabilities should be understood first before investing in anything( not shitcoin) that can bring value.
Don't invest amount that would cloud your judgement all at once
Go steady
And build a foundation around your capacity.
"Invest what you can afford to lose" is pretty basic when it comes to investments, but sometimes I don’t follow that strictly because I’m very confident in betting my future on Bitcoin. For me, it’s all about long-term investment, adding little by little until I reach my goal. I don’t focus on the price much, so I stay relaxed, even during bullish runs. I’ve learned to control my emotions, and even when the market turns bearish, it doesn’t faze me at all.
No this is a wrong advise because if I know I will lose the money, I will never invest it! This statement sound like fud, a way of amplifying the risk in Bitcoin investment. Tell me, how do people lose money in Bitcoin investment? If you can be sincere with this answer, you will realize that most people who lose money in Bitcoin are those who invest today and are already looking to sell the next day; these are not investors but traders.
that's why it's called
a basic concept because at the start, you have to invest what you can afford to loose which is more like another way of saying,
Invest what you can afford to leave for long as though it's not your own. no one invest in an asset because they want to loose the amount they've invested. If that's the case, it will be practically impossible to continue investing when you've stacked up a good amount of Bitcoin. The analogy is only to help you invest and take your mind off any thought of selling untill you've reached your accumilation goal.
As an investor, you should know the risk involved in what you're investing into and even though we're certain that Bitcoin is not all that risky to the extent you can just loose all your investments without your knowledge or just suddenly, it's also good to acknowledge certain possibilities so while you're investing most expecially as an early investor, you try to invest an amount you won't need for a long time.
. Instead of this statement, let us try and put it the right way which is to encourage people to invest amount that can afford to hold for a some years like 4-10 years which is generally suggested in this thread. This also agree with the records that Bitcoin have been making a new ATH every 4 years which is seen as the market cycle of Bitcoin so any investment kept for at least 4 years is bound to generate profits other things being equal.
I think I'm in agreement with this phrase of
Investing what you can afford to hold for the long term because it actually speaks volume of the reputation Bitcoin has built over these years and likely, the notion of investing what you can afford to loose might have spring out in the early days of Bitcoin investment when people where skeptical about it. For now, it's mostly for altcoins and meme coin that you can mostly talk about investing what you can afford to loose since they still lack credibility to a large extent.
4 years might be the completion of a circle but it's still not an end point to ones investment goal. At least, if you've invested for 4 years, you should have build an high level of maturity and knowledge about Bitcoin and deciding to leave you investment further than that will then come naturally because you've witnessed almost all the basic market conditions there is to Bitcoin investment.