i never understood how you can lose money on crypto or stocks. you buy it and it either gets more money or it doesn't. you already spent the money to buy it so how do you lose more money? it's like buying a lottery ticket. i spent $2. if i did not win, i am still only out the initial $2 investment. no loss beyond that.
No one said you lose more money than you put in. You lose money when the value of an asset you purchase goes down. When you buy crypto, you either expect the value to go up or want to use it for shady purposes. If the value goes down, then you "lost" money on the investment.
You buy an asset and the value goes down. Loses are only realized when you sell it, but the value can go down while still holding it.
Lottery tickets have a fixed strike price because there is no secondary market for buying/selling lottery tickets. Something like a share in a company has many variable affecting its strike price. You cannot sell a stock higher than it’s worth.
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u/gloop524 1d ago
i never understood how you can lose money on crypto or stocks. you buy it and it either gets more money or it doesn't. you already spent the money to buy it so how do you lose more money? it's like buying a lottery ticket. i spent $2. if i did not win, i am still only out the initial $2 investment. no loss beyond that.