This is the most common sentence used in the world of finance and investment “Risk what you can afford to lose”, but the reality is, are we actually risking what we can afford to lose? Or is the sentence cliché now that we don’t value it any more. Most of us here right now are crypto investors, Hive is literally a crypto blockchain social media platform, to be influential you need to have Hive power, and your Hive power is Hive crypto powered up. We check people’s wallet and we see big valued Hive power, there are some wallets I check, I see big Hive power and am shocked because that’s a lot of money right there.
Funny how most of us here, our net worth is not just on Hive alone, outside Hive there are more. People have lots of different crypto wallets and have coins worth a lot on them. All these money invested in crypto, and yet we keep screaming “Risk what you can afford to lose”. I doubt we are actually doing that.
Do you think people became extremely rich or made generational wealth from being fearful when investing or rather “investing what they could afford lose”?
Before you read further and start thinking of doing a “go big or go home” action, it’s right you know that am not a financial adviser or motivator, am as confused as every other person trying to figure my shit out. So don’t take my article seriously or as a financial advise.
If you ask most successful how they made money they will tell you they took big risk, failed, learnt from those mistakes and came back stronger. Some people don’t come back stronger they lose hope or found a job and stuck with the job. Some people were lucky to be born into a wealthy home or environment that provided a safety net for them. Whenever they fail, a safety net is alway there to catch them. But some people don’t have that luxury so risking it big is the only option they have. When I say risking it big, I meant risking it big wisely, don’t go gambling saying you are investing, or spend all your money buying lottery tickets. I can relate because there was a time in my life I felt those were ways of making generational wealth. I spend my money gambling and buying lottery hoping one day I hit big and change my life and that of my family for good.
Back to crypto investment, the coins you are investing on, can you afford to lose them? Most of us have our lives invested in crypto, so I don’t think we follow that “invest what you can afford to lose” rule. Look at this scenario, you hear about crypto for the first time, you invested what you could afford to lose because you were just testing the depth of the water. Then you made more than 2X gain on your investment, trust me your next crypto investment will not be done with a “testing the water” or “risking what you can afford to lose” money. We are humans, our wants are always insatiable, the best we can do is Risk management when investing.
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For the first time after 4 long years, I can finally say that I'm managing my risk with a lot of attention to detail. Just 6 months back I was all over the place with barely any money in cash. Didn't turn out that bad tbh
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You have learnt a lot now right?
Oh, for sure. It has been a wild ride but a necessary one. You can really learn money unless you start investing it. It can suck when you make a mistake and lose a bunch of the money you made along the way but that is just part of the process and I wouldn't change a thing even if I could.
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The game of cryptocurrency is one that is addictive. If you fail to have investment plan that you follow strictly, then you will likely regret losing many things from it.
I think there is still a need for balance, risk it and go big but don't forget to enjoy what you earn because what is the point.
That’s the problem, we get overwhelmed with imagining future profits we forget to spend the one we have gotten
Exactly, a balance is very necessary in crypto.
Go big or go home!
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I see, big risk taker