Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: hiramehar on August 26, 2018, 06:20:56 PM
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I have read several posts on this forum where people have claimed to have invested all the money they have on Bitcoin, I also read a post where a guy claimed to have used all the $20,000 his uncle gave him to also invest in Bitcoin, some even sold their landed property. The reason for these risks and others is the firm believe that Bitcoin would be $50,000 - $100,000 by the year 2019 or thereabout.
First, I must say that I admire the courage and high risk appetite of such persons. But, I must also warn.
Yes, It is good for everyone to have high hopes for Bitcoin, and also hope it gets to 100k USD in future, but you should also consider a safety factor in anything you do including investing.
Mathematically,
DO NOT Assume,
P(Success of future term) = 1 ; and
P(Failure of future term) = 0
This implies that, you must always leave a little fraction for probability of failure which in this case is the safety factor, no matter how little the fraction may be. Simply put, you don't have absolute control of what happens to Bitcoin and Cryptocurrencies in the future.
Invest wisely, only invest what you can afford to loose
Just a piece of advice.
What are your own suggestions?
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Good write up with a very good advice. That is very bad for an individual to invest all money into cryptos, most especially investing solely in one coin. Always invest amount which you won't regret losing it. Never sell your properties to invest, even with bank nor cryptos. Selling properties to invest in is a very bad plan. Don't do this even if it is not cryptos.
What we have to know is that investing in cryptos is highly risky. We should be ready to lose any amount we invest in a particular project. This does not happen in cryptocurrencies alone, it also happens in a lot of online business. Let's invest wisely and also know that our investment can turn us into billionaires in a few years or months later.
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I agree. If you were to invest in cryptocurrencies, spread the portfolio more wisely, have a look at some of the major altcoins as well and maybe some tokens in the top 100-200 area. But major part of portfolio should still be in bitcoin or at least ethereum in my humble opinion.
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Crazy that people are willing to put everything they own into something that is still at an extremely risky stage. Hope that they are young, free and single, because their families won't thank them if it goes in the wrong direction. It's not even really just about whether Bitoin, or any cryptocurrency, will experience a huge rise, it's also how long it might take. You never know what may happen in the months or years in between, and having all your money tied up is not a sensible move for anyone. Each to their own I guess, and I'm all for including risk in a portfolio, just not all of it. Diversification is the key.