When we talk about not investing more than you can afford to lose, we’re normally referring to your initial capital outlay. But there’s another side to this too… As you watch your paper profits grow, can you afford not to sell?
Let’s assume you have decided 100k would be life changing to you. You invest $1000 initially, and over time watch it increase in value.
First you hit 5k, then 10k.
Maybe 10k is more money than you’ve ever had in your name. Can you afford not to sell? How would you feel if it crashed to 0? Devastated? Then you are surely by definition over invested.
So how are you going to make it to 100k? Because the reality is you won’t. You’ll sell way before that point if you believe in the idea of not investing more than you can afford to lose.
Quite simply, if you really want to make serious money out of Crypto, you HAVE to tolerate risk levels way outside of your comfort zone and put yourself in a position where your investment is way beyond what you’re comfortable losing.
So where do you sit on the saying?