In the wild, frenzied world of crypto investment, there's an adage that echoes through the digital halls: Invest only what you can afford to lose. An advice, so simple, yet so profound, that encapsulates the very essence of risk management in the financial world. And while this may not be etched in the law books or an official workplace policy, it's an informal rule that most seasoned investors hold dear.
However, I must confess - I too was swept up in the allure of crypto, and, for a time, abandoned this golden rule. My story dates back to 2017, a time when crypto was still finding its footing. Buoyed by success stories and the allure of quick returns, I ventured beyond my comfort zone, laying bets with amounts I couldn't afford to part with.
The climax of my overreach came in 2020, on a platform called Bybit. The specifics? A 10x leverage on a Bitcoin short. As I went to bed, hopeful for a bullish dawn, the tides had other plans. By morning, a staggering $3000 had vanished. The sinking feeling that followed is something I find hard to put into words, but if I had to – it felt like being in a void, a limbo of despair.
Now, you might be wondering, what drove me to such an audacious move? Was it a well-thought-out strategy, an inside tip, or perhaps a gut feeling? In hindsight, it seems more like a spur-of-the-moment decision, a gamble rather than an investment. An overzealous leap fueled by stories of overnight millionaires and the FOMO (Fear Of Missing Out) culture that has become synonymous with the crypto world.
The aftermath was a blend of sympathy, shock, and the inevitable “I told you so” from those around. But for me, the repercussions went beyond the financial loss. It was a jolt, a wake-up call to re-evaluate not just my investment strategy, but my approach to life's risks.
However, as the age-old saying goes, every cloud has a silver lining. The loss, though painful, was an invaluable lesson. A crash course in humility, risk assessment, and the volatile nature of the financial world. Today, I stand by my past actions, not with pride, but with gratitude. Gratitude for the lessons it taught me, the resilience it instilled in me, and the wisdom it imparted.
To those standing at the crossroads of investment, my advice is simple: Tread with caution. While debt can be leveraged for good, especially if backed by diligent research, it's imperative to understand the risks involved. Stick to scenarios with lower risk, and always, always, invest only what you can afford to lose.
In conclusion, as you navigate the labyrinth of crypto, remember that the very essence of any relationship, be it with money, people, or life, is understanding and respect. Respect your limits, understand the risks, and most importantly, cherish the lessons, both good and bad, that come your way.
Here's to wise investing and the invaluable lessons that life throws our way!
This is my participation on topic of Hive Learners called Breaking The Rules
Tell us about the last rule you broke. Any rule at all. If not you, maybe someone close to you. What caused this? And how were things afterwards?
