This principle is not only restricted to Bitcoin rather in every trading market you must invest what you can afford to lose. There are cases where people got so excited to extent that they sell there houses or bought loan to invest in Bitcoin. Such strategies must always avoided as Bitcoin may go bear for indefinite period of time and you have to wait to get your investment back. I have reserved some weekly amount for Bitcoin that is sulphurous for me.

 Some people feel that since Bitcoin is nearing it's halving event, it's best to invest with a huge amount of money, putting the huge amount of gain they stand to profit, forgetting it's penchant for volatility. While others believe that why start with small when I can actually put in a large amount and of in the event that things go south, they join those who regard it as an unwise investment; a waste of time.
Bitcoin investment should be considered only if you have a high risk tolerance, or you are in a strong financial position.

 It's important to maintain a diversified portfolio that includes different types of small investments so this can help lessen the risk exposure. According to experts, it's best to invest 10% into risky assets like Bitcoin.

Investing on what you can afford to lose is next to risk management with your money but some investors not wanting to miss out of the opportunity presented decides to pull all resources at ones into the project in the expectation to truck a whooping profit in the shortest possible time only to get betrayed by the market leading to collosal loss. Cryptocurrency is not a get rich quick money-making-machine technology and the earlier people understands the more beneficial it will be for them, and the more longer they will exist, learn and benefit from the market in the long run.

Invest what you can afford to lose but some people would literally risk it all it's either they are already knowledgeable or impulsive, if you're not ready you can invest at yourself first. Study, gain more knowledge and if you think you can't still afford to invest the money you have to provide your needs, then take your time. But remember that if you're planning to stay in this industry, loss is a part of your development as you gain more experience. It would only depends on you if your loss keeps continuing. This kind of words are already been spread in the forum for people to be aware, if you're planning to sell some of your properties and take a loan just to hop on the market, just don't. They would not guarantee you profit due to it's volatile risk just take your time to manage your money first. Don't let FOMO affects you cause not all in this industry have the same pace.

Yes not only you, but many veteran traders have always advised that invest only that amount that you can afford to lose. If you greed for more and invest more than your capabilities, then definitely you will end up losing all the money. Trading requires skills and some percentage of luck. If you don’t do proper research and calculations and invest on a random coin out of nowhere, then definitely you will make losses. So always do proper research and invest amount which you can afford to lose.

Invest what you can afford to lose does not mean you want to lose it with an investment. Practically it means if you lose what you invested, your life will still be fine and won't be affected to serious level like you will have to suicide because of your investment failure.

It is not the same with people who borrow money to buy something and say they are investing. No, they are not investing anything but are completely gambling. Because they don't have their own money, own capital to invest. Borrowing money to buy something with hope that they will get rich is gambling, not investing. Do this only if they can afford to die.

Crypto would be a better place if people don't take loans to buy shitcoins and after shoot themselves

Also invest in what you understand, many individuals don't understand that not every cryptocurency will be successful in future like Bitcoin so they shouldn't be investing in everything they see and it's wrong to take loans or sell your properties to invest in Bitcoin other altcoins. Investing in Bitcoin should be done with only spare money but some individual still won't listen and they'll think they're smarter than others and go to use loans to invest.

Investing with the amount that you can afford to lose doesn't mean that when you invest, you'll lose it but it helps you in a situation when you don't get the results that you expected from the investment to stay calm and rethink on your next investment instead of panicking.

We repeat this like a mantra on this forum and to our family and friends... but nobody listen. The moment when they buy coins with money that they cannot afford, then they need that money and have to sell prematurely and that is when they occur losses.

You have to "time" the market to sell exactly at the right price to maximize your profits, if you are forced to sell before that time... then you have to expect that you are going to have losses or a very small profit.

The people who do this..... blame Bitcoin for their losses or small profits and they turn into haters.