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Basically, prudent money is the basic element for investment. But this prudent money alone does not guarantee your success in investment. Based on its basic element, prudent money, you have to take investment management and risk management steps. That is, when, how and in what strategy will you invest or what steps will you take to maintain it in the long term. Investment management and risk management should be completely dependent or built on prudent money. The parts of investment management are investment strategy and aggressiveness in investing properly. The parts of risk management are protective steps to maintain investment successfully in the long term such as: keeping backup (emergency fund, reserve fund, cash flow and necessary fund) funds ready in a proper plan. Even if you somehow lose the money used in investment, keep an eye on this so that there is no major change in your life. Without prudent money, these plans are of no value, even prudent money is weak without proper planning.
Basically all investments have risks, so investors must be prepared to face the possibility of losses. However, using cold money and having a long-term investment goal in mind is an effective strategy for investor who believe in Bitcoin long-term growth potential. The scary things you described above can be overcome by conducting research and analysis on Bitcoin before making investment decisions. Investors must also remain calm and not make investment decisions based on emotions, especially when Bitcoin prices are fluctuating.
When investors understand the risks of investing in Bitcoin and are prepared for price fluctuations, it will be easier to determine their stance, especially when equipped with strategies that suit their financial capabilities, such as those commonly used by other investors, such as DCA and Buy and Hold. These strategies can usually reduce risk and increase potential profits.