Only invest what you can lose
A very common phrase that we hear in crypto's world is "Only Invest What You Are Comfortable Losing" but how much is that exactly? This number can very widely for different people and people seldom lose sight of it when they are getting crazy gains. Crypto investing is not what it used to be, at least not since December of '17. People are now seriously understanding the meaning of this phrase so I will help you figure out what your number is.
When I initially started investing, I started with my coffee money. After I put the money in, I didn't even bother checking in on it. Even after the huge jumps in prices, I would not make anything worth mentioning. That is an example of too little.
Then I got a little serious and decided to put in kind of money I am comfortable losing in a casino. At this point I started checking my account at least once a day. I would make decent profit with this money but no lambos. This is an example of decent investment.
Then I got a little addicted and put in more money to average out my buy rates after December price crash. At this point, I started checking my account status every hour. If we saw meteoric gains of 2017 again, I will be sitting on a pretty good profit but if i lose this money, it will haunt me for a long time. This is an example of excessive investment. If you have to check the portfolio status multiple times a day and its making you lose sleep, you have invested too much and the profits from this investment are not worth the psychological pressure its putting on you.
This number is different for everybody, for some it might be 1% of there total assets for others it might be 90% of there total assets. But, everyone should figure out what there number is. I learned this hard way but hopefully someone can learn from my mistake and make a better choice.
Disclaimer : Only invest what you are comfortable to lose. This is true for any investment. This post is my personal opinion, do your own research before making any investment decisions. If you make any trades after reading this post, it is completely your responsibility. I am just a guy with an opinion like everyone else on the internet.
You got a 15.38% upvote from @bid4joy courtesy of @mightypanda!
Things change. I think Steem at $2 is an amazing price.
I just bought few at 2.14
Will buy more at 2
I wonder if you almost nailed the bottom? It looks like $2.09 was the low.
For the time being i think. But now my withdrawal in stuck on binance since last 12 hrs. Dont know whats wrong.
That's scary. Did you hear about Poloniex locking up people's accounts?
No, i have polo acct with quite a bit of balance, i was thinking of closing it anyways. Their steem wallet has been down for forever.
Well, time has shown that apparently i have followed the wrong rule "always lose what i can invest". Time to change it up a bit :D
That's how I started investing but it gets better over time.
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Great post!
Thanks for tasting the eden!
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