Determining personal level of financial risk:

The “Crypto Sphere” is the most volatile and risky financial play-space on the planet. As I talk to people who have very limited knowledge of the crypto space, I always explain the risk involved, it goes something like this:

Playing in this space is nothing short of gambling with a high dose of speculation. The same mindset must be used as the vacationer in Las Vegas. Being there only for shits-n-giggles and expecting to lose your entire bank roll. Never play in crypto with money you can’t afford to lose.  Understanding you have a 50/50 chance: to lose it ALL or win big.

How much of your money are you are willing to lose:

If I came to you and offered you a bet on the flip-of-a-coin (50/50).

• Heads – you win $10,000
• Tails – you lose your stake.

Would you take that bet by staking $1 of your own money. Of course, most people (including myself) would. A 50/50 chance to win $10,000 with only a single ($1.00) of your own money at stake.

Now, start increasing your risk (with only money you can afford to lose) using the 50/50 scheme:

You win $10,000, or you lose $2.00 – Yes, I would

You win $10,000, or you lose $5.00 – Yes, I would

You win $10,000, or you lose $10.00 – Yes, I would

You win $10,000, or you lose $25.00 – Yes, I would

You win $10,000, or you lose $50.00 – Yes, I would

You win $10,000, or you lose $100.00 – Yes, I would

You win $10,000, or you lose $250.00 – whoa, got to think about that!

And so on …

Remember the amount of money you put on the bet is ONLY the money you can afford to lose without injuring yourself financially.

When you reach the level of risk where you say (No), back down one step to the last (Yes, I would) and that is the reasonable amount of financial risk you should deploy into the Crypto-Space:  and not a dollar more!

Like Vegas, it is totally appropriate to factor in: even if you do lose financially in the Crypto-Space you will have a lot of fun doing it; that is in-itself a win.