You’ve probably heard this advice many times:
“Never invest more than you can afford to lose.”
But do you truly understand what that means? No. It’s something we only really understand once we’ve lost the money — and we realize that we have invested too much.
I’ve been there. Even with more experience than you, I’ve made that mistake.
My Hard Lesson with Altcoins
Earlier this year, when I noticed Altseason starting, I forced myself not to buy more.
It was hard.
- FOMO was kicking in.
- Prices were going crazy.
- I felt angry at myself for “missing out.”
I wanted to buy so hard. But then I realized:
My portfolio was already more than 10% in altcoins — and that is enough for me.
A tough decision, and I can give you some softie reasons here:
- Most of us chase what’s going up — and then miss the moment to get out.
- No one knows how altcoins will play out. Projects disappear. Teams abandon ship. It can happen to any of them.
- When I finally take profits, I’ll be proud I stayed disciplined.
But the real reason is:
This is the amount of money I am ok to lose.
Yes, it’s these 10% that I am comfortable with to lose. I won’t be happy, but I won’t lose sleep over it.
That’s how I measure it. That’s my line. I don’t want to risk more than that. What is your line?
How do I Know What I am Ready to Lose?
Over the years, I’ve lost a lot of money in crypto. Not always because of my own stupidity and greed — sometimes because of technical failures or things beyond my control. I’ve also gained a lot, yes. But I hadn’t yet learned the hard lessons. This is an ongoing project I think.
My advice is: use really only the amount you are ok to throw out of your window RIGHT NOW. But how much is that?
I calculate it like that: Tonight or this Saturday if you go out to town, how much are you paying for dinner and drinks? And how much more would you be ok to pay more for it? That is the amount you could put into Crypto weekly for example.
In the end, true confidence in crypto is not about chasing every coin. It’s about knowing your limits — and sticking to them.
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