Although Bitcoin has had some sort of impact one everyone who knows about it, the younger generation has really shown motivation towards investing in Bitcoin. According to a recent study, it was discovered that more than thirty percent of millennials prefer to have possession of more than or at least one thousand dollars’ worth of Bitcoins. They would rather have Bitcoin instead of investing their money in bonds or stocks. Although a lot of people have tried to argue against these surveys, the point is still relevant: A large part of the young generation has shown keen interest in Bitcoin instead of more traditional investments in the finance world. Some people view this to be a good move while others think that it is really unwise and it could have a long term impact on the young investor’s financial future. Based on this, these youngsters receive different kinds of advice regarding Bitcoin investment. Some tell them to only invest the amount that they can afford to lose while others tell them to go all out. Which approach works best mostly depends on circumstances and how the investor plays his or her cards. That being said let us take a closer look at why young investors get warned about only investing what they can lose. XTR trading platform blog.co .uk discusses this in great length.
Bitcoin Investments Can Be Risky
A lot of up and coming investors who are entering the Bitcoin landscape have unrealistic expectations in their minds as far as their returns are concerned. Most of them even view ten percent returns as unexciting. The reason for this kind of mindset is that there have been instances when Bitcoin investors have turned their fortunes around with small investments. What these youngsters do not know however is, that these kinds of situations occur rarely. These kinds of outrageous and idealistic expectations tend to get them into trouble during the long run and sometimes in the short run as well.
Limited Risk Perception
A large amount of Bitcoin investors also have a limited risk perception. In fact, it would even be fair to say that this is true for investors in other crypto currencies as well. Since the market has been in an extensive bull trend for more than a year and more than fifty percent of the participants in the current market haven’t been there for a long period, they have not experienced massive losses until recently.
Why Only Invest in What You Can Lose?
This kind of sound advice doesn’t only apply to bitcoin investments but other kind of investments too. The reasoning behind these kinds of statements is very sound as all it means is to make sure that you keep your losses to a bare minimum. If you only lose money that you can actually afford losing, you will still be better off than losing all of your money and seeing that Bitcoin investment is a risky game for newcomers, chances of facing losses can be really high. This is why so many funds, bonds, and other types of investment opportunities have tons and tons of disclaimers that openly claim about the potential losses associated with them. XTR gate crypto trading platform blog also talks about this in a lot of detail.