Over the past seven years on the crypto community, there was this general saying that always got me wondering especially many people that believe Bitcoin is the future of money, unfortunately you come across this phrase, " Invest how much you can afford to lose". I'm not always please hearing this sad saying, however it look like this concept is beginning to change for good.
I don't understand the phrase "Invest as much as you can afford to lose". I think this is more of a gambling mindset, you must have a budget to limit risk. In crypto, losses only occur if you sell all your Bitcoin holdings. So, as long as you don't sell them, you will never experience a loss, even if the price potentially drops significantly. This only affects the value, not the number of Bitcoin you own. I believe that as long as you have confidence in what you hold, you will never want to sell it, especially not at a loss. How could that happen when we know the potential and benefits of Bitcoin in the future, when major institutions are busy accumulating Bitcoin, yet you sell it just because a decline causes fear within you.
Are you an investor or a trader? Think about that.