This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Risk is inevitable for every investor – even hedges don’t protect you 100%
Think of cryptocurrencies as aggressive tech start-ups. Cryptocurrencies and blockchain technology are the directions the world is moving.
Many startups fail, and some are successful. We don’t always know which ones will succeed, though.
Determining which ones you should invest in will involve researching to make prudent estimations on which ones will likely succeed. But no one really knows. Any cryptocurrency can blow up in smoke in an instant.
Cryptocurrencies will guarantee a loss at some point, but if you invest in stocks, you will also experience a guaranteed loss in your portfolio.
All investing involves some level of risk; it’s inevitable.
People frequently trash-talk cryptocurrencies and say they’re going nowhere, but if you observe the situation, you will notice many cryptos are sticking around, and their price per share also steadily grows.
People said the same thing about Amazon, Apple, and Microsoft. It didn’t make sense, so no one believed in it – except a few people and those people were financially rewarded.
But aggressive investing is not for everyone…
Always Start Small
If you’re uncomfortable with a hyper-aggressive investment like cryptocurrencies, you should never invest more than 1–5% of your total investment portfolio or net worth.
I even recommend not counting your crypto investments because it could all disappear. Treat it like spending money. Once you spend it, it’s gone. If you invest in crypto like this, you will never be disappointed.
Though cryptocurrencies offer enormous wins, they also come with enormous dips, requiring extensive emotional regulation.
And for some, it might not make sense for you to invest in cryptocurrencies because of the high volatility.
But always remember, whether you invest in stocks or crypto, you will lose and win some.
Don’t Gamble
Some crypto is all hype. If you invest in hype crypto, you risk completely throwing away your money and losing big time.
Investing is not the time to gamble and play the game as if you’re at a casino. Some investments will only return your losses. So be wary.
Avoid The Hype
Read the white papers and research articles discussing cryptocurrency’s benefits, goals, and purpose.
Stay informed in all of your financial matters.
Many people make investment decisions based on social media and hype; this is not informed investing but emotional investing.
Though you can use social media-driven cryptocurrencies to your advantage, you’re playing with fire if you don’t know what you’re doing.
Will The Market Go Back Up? I Don’t Know & I Don’t Care. Are You An Emotional Investor?
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.