When a person has much money, he or she can afford to take high risks. That's why you see billionaires making risky investments that an ordinary person can't make.
If a normal man makes 100k on Bitcoin and it crashes, the man would contemplate suicide. That's why the rich would keep on getting richer. They make big investments.
This is a good strategy to use when doing high risk investment with a low risk tolerance level. It gives you the room to build your risk tolerance level gradually.
Yes it is better to indentify what is your risk aversion and decide in what assets to invest knowing your financial possibilities too to dont do things you can regret later to tell you the truth
A lot of people believe that crypto is for a layman as you can invest a small amount and can still profit. However, this is not true. Just like other market, crypto is also basically for people who have a lot of money for investment/.
That could be a good consideration though. But if you really want to take it into perspective, you would never invest in anything. That's because money is always gotten through hardwork.
You have to view investments as gambling. With this approach, you invest only what you can comfortably afford to lose. Doing too much is the reason shock kills people when investments fail.
But if you see them as gambling, they will give the same result as gambling, in games of chance there really is little intrinsic value to study, in investments what benefits you and gives money thanks to your investments is to find that intrinsic value in a security/asset that hasn't paid off yet in price terms, we can't look at it the same way, unless you're into trading, then we might look at it that way.
The level of your risk tolerance is important whenever you are into trade.
