Guarding your treasure from loss in todays language is called insurance. This is talking about insurance on the money you are investing (10% youve been saving for a while and have found where to invest). Its easy to put your money into something and tomorrow you hear somethings gone wrong and the money is gone, even though you understood a lot about the investment(last part dealt with understanding well what you are investing in) and its risks.
In ancient times this was collateral, even today banks will use collateral to give you a loan or increase your loan due to the equity. Today this will depend on what you are investing in. If you're investing in shares you can do a hedge. If its a contract between you and another person and you see to much risk you ask collateral from that person (which is more than your investment) if everything goes well you return the collateral if not you get to keep it.
Sometimes this might be plan B that will make the overall investment still worthwhile/reduce your losses. If someone has a great idea for a business(lets assume a coffee shop) but you are providing half the cash so he can start it. You might make an agreement that will give you all the property the business has if it fails so you can sell that and reduce your losses.
Remember that if you have a business partner who also has skin in the game and will therefore also do his/her best for business to succeed you already have less risk so need less insurance. If you know they understand the business well to again you need less insurance.
Remember if its an ICO youre investing it and then go on an exchange it might be good to have stop loss price put in place as you would with shares.
Source image: www.lulu.com
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