Invest only Discretionary Money on Bitcoin
You should only invest discretionary money on bitcoin or whatever crypto currency you decide to buy. By discretionary I mean that it is money you can fully afford to lose. No one in their right mind would buy lottery tickets, alcohol, cigarettes or whatever with money that has been reserved for rent, power, or food.
Bitcoin has made some investors a lot of money who had bought and sold at the right time. At the end of the day, something is only worth what others are prepared to pay. This applies whether it is the property market, the sharemarket, or bitcoin.
So what is discretionary money? Well that really depends on what is important to you and your family. I have known some people that think that spending money on booze and cigarettes is more important than buying good wholesome food for their children but then I wouldn’t expect these people to be ready this anyway.
If you are single then you can decide what you are willing to forgo in order to start investing in bitcoin otherwise you will have to try and convince your other half to join you in the vision.
You don’t have to give things up completely, you can spend half as much on alcohol or takeaways. It all adds up in the long run.
The bottom line is that if the loss of your money is going to cause you to lose sleep then investing in bitcoin is certainly not for you,
This article is the opiniion of the writer and not intended as financial advice. It is advisable to seek financial advice with matters of investments.