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Economy => Trading Discussion => Topic started by: Finn-in-web on October 19, 2020, 10:32:50 AM



Title: Different level of risk in crypto currency trading
Post by: Finn-in-web on October 19, 2020, 10:32:50 AM
Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.


Title: Re: Different level of risk in crypto currency trading
Post by: Shkoppola on October 20, 2020, 10:02:26 AM
If you simply buy or sell in the spot trading only what you invest is at risk. You probably get the risk alert when you move on margin trading or others working with leverage, as it happens to me on Binance. But as far as I know you can lose what you invest, due to the high volatility and the leverage. For further info I suggest you to read some tutorials on your exchange, otherwise stick with the spot trading.


Title: Re: Different level of risk in crypto currency trading
Post by: Vicky agarwal on October 20, 2020, 10:22:48 AM
spot/future /leverage /scams /news based manipulation /whale manipulation /exchange gone ,and many more


Title: Re: Different level of risk in crypto currency trading
Post by: el kaka22 on October 20, 2020, 04:08:46 PM
There is no place legally able to ask for more from you, in places like robinhood which deals with real stocks and margin trading and leverages, they do ask more from you, you could spend more than you invested in robin hood and in other stock market places, you basically take out a debt for investment and not really to yourself so that makes things easier, in the end company only buys stocks and they ask the difference from you instead, and not really put money into your bank account.

So, stock market has what you are afraid of. However in crypto world people do not give their details everywhere, some places ask for your KYC but as long as you do not share your KYC they can't know who you are and that is why they can't charge you anything more than what you put in there.


Title: Re: Different level of risk in crypto currency trading
Post by: so98nn on October 20, 2020, 04:15:40 PM
[...]
But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...
[..]

They have stated the reason by themselves and thats High Volatility of the coin.

So if I have to explain this in short words then I would compare BTC with any other altcoin. Here, you know very well BTC is invested heavily all the time, it's total 24 hrs market cap is always higher but it doesn't move the prices by crazy thousand dollars each time. However, an altcoin is easy to move with smaller investment and this is known by many traders. So they altogether invest a lot, pump and dump these coins and thus it could cause lot of movement (volatility) in them.

So you will never know at what point are you and whether is it right one to invest into or not. It could happen you may invest at X price which already hyped one and in the second movement it could go down with large difference causing extensive loss to your investment.



These are kind of logics behind this. If someone is having another one then I would love to read that one as well. But this is what volatility risk is.


Title: Re: Different level of risk in crypto currency trading
Post by: jossiel on October 21, 2020, 05:00:10 AM
The majority of the cryptocurrencies bear the same risk except for the stable coins. From the root word, they are stable and serves as the fiat in the crypto market.

Bitcoin is risky and altcoins too.

Defining them by level, they are the same in levels. A good basis is to look at the liquidity or volume of a coin. It will give you an idea if it's going to fluctuate that much by looking at the high daily volume. But if that coin doesn't have that much, just leave it and don't buy it.


Title: Re: Different level of risk in crypto currency trading
Post by: TheUltraElite on October 21, 2020, 05:14:31 AM
I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.
Crypto is not a financial product. It is the currency. The product would be the derivative like options or futures here.

Quote
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)
That statement is applicable to any type of investment. Nobody will tell you this in every place. You have to assume it.

Quote
I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out?
In spot trading you may buy some shitcoin and get stuck not being able to sell back. In futures and perpetual swaps you will be gambling on your money essentially and risk losing it all. Hence Spot is somewhat less risky provided you know what you are buying and selling.

There is no variation of risk with amount here. Markets can go down any moment and you will be stuck in the worst case scenario, but practically buying bitcoin and holding for long to sell is profitable as per the last 10years records.

Quote
When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...
Cant say unless you show the image here.


Title: Re: Different level of risk in crypto currency trading
Post by: maydna on October 21, 2020, 05:37:48 AM
As far as I know, the cryptocurrency risk will be different between one coin to other coins because the price is different too. Even if you invest in bitcoin, you will have a risk of losing your money value.

Every investment will have risk, but we can minimize the risk by learning how to prevent it. The higher the product/coin volatility, the risk will be bigger, so you need to know how to reduce it.

Perhaps, when you buy bitcoin or other coins at a price now, the price can up and down anytime. If the price is down, you lose your money value because it is down from your buy price. But you have a chance to see the price will bounce again to the high price in the next hours or days. If the price still down, even it is down deeper, you can cut loss at a price now, so you can buy back the coin and hold it for a while.

If the price can increase back, you can sell it, and you will make a profit.


Title: Re: Different level of risk in crypto currency trading
Post by: semobo on October 21, 2020, 08:08:22 AM
Every cryptos other than stable coins having volatility and it ranges depends on the coin's price, market cap value, existence and potential.There is no way to identify or reduce the price volatility that is why some exchange have that warning.But this is not really a warning,its just an advertisement for their platform.


Title: Re: Different level of risk in crypto currency trading
Post by: shield132 on October 21, 2020, 08:42:25 AM
Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.
As far as I understood, you mean that if you invested $1000, is there any chance to lose more? i.e. you may mean that for example bitcoin's price will go into minus and you'll have to pay that debt, am I right? The maximum you can lose is the money that you invested in the beginning but on another hand:
1. You invested $1000 and got $14000. Price went to zero, you lose $14000. If price kept $1000 and then went to zero, you lose $1000. But the most curious thing is that it happens like people still trade with dead coins or there are exchanges that still carry dead coins.


Title: Re: Different level of risk in crypto currency trading
Post by: Kupid002 on October 21, 2020, 08:55:51 AM
Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
.

yes that's the maximum you can lose in trading  thats all of your capital that you  use to start in trading .



The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)
.
Crypto`s is highly volatile thats why you will find many warning when you plan to start trading. its normal because that Was the risk of that investment and investors should know that before start buying any coins.


Title: Re: Different level of risk in crypto currency trading
Post by: Silberman on October 22, 2020, 06:04:13 PM
Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.
You are asking two different questions, the first is do different assets that are on the same market present different risks? And the answer to that is yes, bitcoin is way less risky than a coin being released during this year and the reason is that bitcoin is the leader of this market and it will remain that way for the foreseeable future, now for you other question can you lose more than what you invested in a particular coin? And the answer to that is it depends, if you are only buying or selling without using leverage then the answer is no, you will only lose the capital you invested in it and the warning you get comes from the fact that coingecko is probably legally obligated to put such warning to avoid being the target of lawsuits, however if you use leverage and you do not use a stop loss then you can lose more than what you invested in the coin originally.


Title: Re: Different level of risk in crypto currency trading
Post by: teosanru on October 22, 2020, 06:10:50 PM
Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.
Let me tell you a general notion. There are various types of markets. Spot/future or unleveraged/leveraged. But there generally is one rule. The amount of money deducted from your account at the time of order is the maximum amount you can lose. What I can interpret from your message is that you are confused in 2 things. Number one is the warning on coingecko. I think it might be merely a disclaimer by coingecko implying that they don't solicit you for any trade. While on Binance you might be entering trade from a future/leveraged account. In a leveraged trade you just have to keep the margin amount of your order at time of purchase with Binance and that margin is your maximum loss but Binance will liquidate your position at the liquidation price which means squaring off your position without your approval.


Title: Re: Different level of risk in crypto currency trading
Post by: stomachgrowls on October 22, 2020, 08:41:59 PM
There is no place legally able to ask for more from you, in places like robinhood which deals with real stocks and margin trading and leverages, they do ask more from you, you could spend more than you invested in robin hood and in other stock market places, you basically take out a debt for investment and not really to yourself so that makes things easier, in the end company only buys stocks and they ask the difference from you instead, and not really put money into your bank account.

So, stock market has what you are afraid of. However in crypto world people do not give their details everywhere, some places ask for your KYC but as long as you do not share your KYC they can't know who you are and that is why they can't charge you anything more than what you put in there.
Well explained buddy!

This is the difference between centralized and semi-decentralized one where crypto exchangers doesnt really have that similar scheme on what we do saw on stocks or forex brokers.

It doesnt matter if you do really deal up with leverage,spot and future kind of trades and as said, the amount that you had only put up is only the amount that you would totally loss here on crypto.

Theres no such thing about having a deep debt since you do make out some leverage or something.Good thing here is that you do able to decide neither to hold or not into your coins
until recovery.


Title: Re: Different level of risk in crypto currency trading
Post by: CASTIEL05 on October 23, 2020, 10:52:50 PM
They displayed the warning sign that your funds is on risk, for us to be aware of what will happen to our funds. It is really obvious that the crypto itself or exchanges are warning us that they hold our fate in trading. Anytime, we may lose. It is your side if you will be lose or win trading. The risk management factor should be consider in trading. It is not as easy as what we are expecting for. Since, trading can give us money and destroy our lives, they always advise the noob for risk that they may encounter.


Title: Re: Different level of risk in crypto currency trading
Post by: ice098 on October 24, 2020, 12:28:28 AM
The majority of the cryptocurrencies bear the same risk except for the stable coins. From the root word, they are stable and serves as the fiat in the crypto market.

Bitcoin is risky and altcoins too.

Defining them by level, they are the same in levels. A good basis is to look at the liquidity or volume of a coin. It will give you an idea if it's going to fluctuate that much by looking at the high daily volume. But if that coin doesn't have that much, just leave it and don't buy it.

So far i didn't encounter such that a level of difficulty when it comes in trading. For me they are just the same, the risk and the difficulty of trading crypto especially when it comes to altcoin and bitcoin. You will feel the same feeling when you are about to trade your altcoin and even bitcoin the only difference between two crypto was your level of fear. So far you would get that fear when you trade bitcoin its due to bitcoin was expensive enough to lost than altcoins.


Title: Re: Different level of risk in crypto currency trading
Post by: CryptopreneurBrainboss on October 24, 2020, 02:58:58 AM
I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out?

Yes if only your aren't engage in other advance trading experience like margin trading. Investing just by trading on spot exchanges or buying of tokens can only cost you your initial funds in case it was a bad investment and market has declined to bring the price down. Do understand that unless the token had been delisted from all exchange or they lack liquidity that prevents your from selling since there's no buyer available, you would mostly have some funds to left in the token.

Cryptocurrencies are subjective to risk, the stablecoin aren't no different since they lose and gain value too although their state of stability gives more assurance than other cryptocurrencies out there including bitcoin.


Title: Re: Different level of risk in crypto currency trading
Post by: onecall123 on October 24, 2020, 03:34:46 AM
Everything has risk can go to zero, you have to deal with risk until you're going with crypto currency trading. I've been in the crypto exchanging business for some time now and I attempted many security estimation to limit the danger but nothing make me happy. I recommend you join a decent trading signal group those are providing good calls for both beginners and experienced crypto traders.


Title: Re: Different level of risk in crypto currency trading
Post by: Salauddin1994 on October 24, 2020, 04:10:58 AM
There are many risks involved in trading cryptocurrencies without skills about business the exchange will be very difficult that's why trading rules and strategies must be followed before trading need to try new information about the market. Knowing the updated information will make it easier to follow the price difference of the currencies also enjoy trading signals protection features that will ensure that your personal data and funds are always protected.


Title: Re: Different level of risk in crypto currency trading
Post by: EdenHazard on October 24, 2020, 06:35:57 AM
I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out?

Yes if only your aren't engage in other advance trading experience like margin trading. Investing just by trading on spot exchanges or buying of tokens can only cost you your initial funds in case it was a bad investment and market has declined to bring the price down. Do understand that unless the token had been delisted from all exchange or they lack liquidity that prevents your from selling since there's no buyer available, you would mostly have some funds to left in the token.

Cryptocurrencies are subjective to risk, the stablecoin aren't no different since they lose and gain value too although their state of stability gives more assurance than other cryptocurrencies out there including bitcoin.
A hyper volatile crypto market allows certain coin to go up for 10,000% and go down disappear to the dust. This is actually what most exchange warned about.
A margin trading and its leverage is indeed an advanced trading which it's not for newcomer, op seems have no idea about this though.
He might have heard his friends or colleagues telling him that they lost the whole salary in crypto + seeing those warning messages makes him paranoid.

If you compare it to the traditional market which limited the max loss to certain percentage then crypto is indeed high risk, but if you do understand crypto and had some trading experiences in crypto market.. I'd say the risk is just average.


Title: Re: Different level of risk in crypto currency trading
Post by: Hypnosis00 on October 24, 2020, 10:15:06 AM
Crypto trading is a high-risk level and I believe also that it is the same for any trading platforms.

Once we start trading, it is accepted to face the risk. I'm not sure if traders have to think about it first before getting into this field or just be thinking about easy money. No wonder why many traders have difficulties in making good trades because they are not yet equipped with knowledge and skill before then. If they consider themselves thinking of becoming a trader, they should also have to think about all the needed things, otherwise, it was an easy end for them.


Title: Re: Different level of risk in crypto currency trading
Post by: palle11 on October 24, 2020, 11:43:28 AM
Crypto trading is a high-risk level and I believe also that it is the same for any trading platforms.

Once we start trading, it is accepted to face the risk. I'm not sure if traders have to think about it first before getting into this field or just be thinking about easy money. No wonder why many traders have difficulties in making good trades because they are not yet equipped with knowledge and skill before then. If they consider themselves thinking of becoming a trader, they should also have to think about all the needed things, otherwise, it was an easy end for them.

No, I think most traders don't think about loss before they enter the trading business. They get more focus on gains than what they can loss while trying for gain. This is why they don't study money management. And if they study it, they don't practice it.t


Title: Re: Different level of risk in crypto currency trading
Post by: pawanjain on October 24, 2020, 02:52:08 PM
The are different types of trading. Spot, Margin, leverage, Future and Options etc... requires less capital amount and gives the opportunity to win a big amount.
These types of trading also comes with a risk of losing all your capital and sometimes more than that.
This is why you see the alerts on some coins saying it is a high volatility coin.


Title: Re: Different level of risk in crypto currency trading
Post by: Xembin on October 24, 2020, 06:44:01 PM
There are different level of risk in cryptocurrency trading in the environment. Trading your coins in a place that is not safe is a big risk to trader and it hard for such trader to make a good profit from the environment. Low quality is another risk of cryptocurrency trading that every trader must aware of before carry out their trading in the market. Try to understand the season is another risk of cryptocurrency trade in the market. Before trading your coins try to understand the market if there are customers who is looking for that product you are holding or not before supply .


Title: Re: Different level of risk in crypto currency trading
Post by: BlazingHashes on October 24, 2020, 07:26:17 PM
This is my view of the level of risk
+ Spot: low
+ Trading the token from farming: medium
+ Future / leverage: high

Cryptocurrencies are a world of risk and adventure. I have /3 of my accounts since 8/3 this year, then x10 spectacularly in just 2 months, and resumed /2 recently :(

I think I'm really bad at greed management although I told my heart a lot that this is a financial adventure, the lost, is my own soul and real property.


Title: Re: Different level of risk in crypto currency trading
Post by: iamsheikhadil on October 24, 2020, 07:36:49 PM
Actually the warning is meant that crypto currencies in general are highly volatile and change their prices very much every instant. Fiat and other stocks don't change in value so much. It's probably a warning for newbies who are investing huge amount that invest only what you can afford to lose! Else, it will be too bad a risk!


Title: Re: Different level of risk in crypto currency trading
Post by: bitbunnny on October 24, 2020, 07:57:22 PM
The are different types of trading. Spot, Margin, leverage, Future and Options etc... requires less capital amount and gives the opportunity to win a big amount.
These types of trading also comes with a risk of losing all your capital and sometimes more than that.
This is why you see the alerts on some coins saying it is a high volatility coin.

Because of all these types of trading every trader has a choice. We can choose what suits us the most and especially what is in accordance with our apetite for risk.
Some traders are more self confident s and willing to risk more expecting also bigger profit.  Volatility is something we always need to have in mind and not risk more than we can take. Bigger risk doesn't necessary mean bigger profit.


Title: Re: Different level of risk in crypto currency trading
Post by: DoublerHunter on October 24, 2020, 07:58:29 PM
^ For me, there are two tradings that have a level of risk. The riskiest in trading for me is day trading which is you need to monitor the crypto market 24/7 a day. The less risky is long time trading, which is I feel safe because you only have to do is wait the market becomes bullish and your profit was there. Nevertheless, when we talk about trading, it is expected that there is a risk. We should know this from the start because if you don't know how to manage risk it will end up a loss for you.


Title: Re: Different level of risk in crypto currency trading
Post by: Distinctin on October 24, 2020, 11:41:19 PM
^ For me, there are two tradings that have a level of risk. The riskiest in trading for me is day trading which is you need to monitor the crypto market 24/7 a day. The less risky is long time trading, which is I feel safe because you only have to do is wait the market becomes bullish and your profit was there. Nevertheless, when we talk about trading, it is expected that there is a risk. We should know this from the start because if you don't know how to manage risk it will end up a loss for you.
Trading is totally at risk, regardless if that is day-trading or not.

I remember one of my friends asking it before, which is risky trading or holding? I answered it both of them are risky, why? Because in crypto space, in the crypto investment we can't assure of anything in here. Guaranteed less that we can make good money in trading or even in holding because of its nature. What it makes hard for this because of its volatility. Even an expert trader could also suffer losses, how much more for a beginner, and less experience.


Title: Re: Different level of risk in crypto currency trading
Post by: MCobian on October 25, 2020, 03:05:20 AM
As long as you stick with spot trading, it is possible that you will only experience a loss according to the amount of capital you use for trading.
But the risk becomes big when you use the margin trading feature, you can experience a loss much greater than the capital we use. And the
coins themselves have a different risk from one coin to another, depending on the liquidity and volume of the coins.


Title: Re: Different level of risk in crypto currency trading
Post by: maydna on October 25, 2020, 06:54:09 AM
As long as you stick with spot trading, it is possible that you will only experience a loss according to the amount of capital you use for trading.
But the risk becomes big when you use the margin trading feature, you can experience a loss much greater than the capital we use. And the
coins themselves have a different risk from one coin to another, depending on the liquidity and volume of the coins.


I would not advise using margin trading because the risk will be double than the usual trade. Without proper knowledge in trading, you will find it hard to follow the trend or the price, and you can make a wrong prediction. But if you still use the usual trading type, I guess that even if you buy bitcoin at a current price and the price is down, you can still profit later when the price starts rallies.

The bigger money you use in trading will give you a bigger risk, and you have a big chance to lose the money too. But if you can manage your money to trade, I think you can minimize the risk of losing the money, and you will get the opportunity to make a profit. So you need to determine how much money you will use in trading.


Title: Re: Different level of risk in crypto currency trading
Post by: SquallLeonhart on October 26, 2020, 10:01:26 AM
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.
I sort of understand that you are trying to ask there will be any differences at risk levels between crypto investments and other investments. The simple answer that will be, 'no'. There is no big differences in risk levels in all investments from crypto investments. All the market are volatile and hence crypto markets are volatile as well and the level of volatility in cryptos may differ time to time but that is the basic measurement for the level of your losses may incur in your investment.

If you invest $1000, the maximum you may lose is the same $1000 even in leveraged trading. There will be no additional losses just because of you are opting for leveraged trading. But, losses may occur more rapidly in leverage trading than spot trading.


Title: Re: Different level of risk in crypto currency trading
Post by: CryptocurencyKing on October 26, 2020, 03:36:25 PM
There is a risk in all forms of business or endevour with a currency value attached and very much crypto trading isn't left out. It's not surprising that traders have definitely got a lot of evaluation to do with regards to risk.
Risks on trading has got several spares. From your lot size, spread, trading position in the market, account size and more.

As a good trader, risk management is one of the vital steps you've got to develop and master. It plays a role in determining why you should enter a trade, when you should enter and exit and ensures, what lot size you should enter a trade with with respect to your account size despite the leverage at your disposal as it has a direct relationship with the commission you would be paying as well.


Title: Re: Different level of risk in crypto currency trading
Post by: iv4n on October 26, 2020, 04:03:21 PM
What is missing is research! Ok you got some warning messages, why didn't OP try to investigate more about it? Maybe there're valid reasons for those warnings, maybe it's a shady project, but if you wish to know more you need to check it by yourself, you can't expect others to do the job for you!
Now I could check more about this specific project and to find out why it's flagged by some services, but I have no interest in doing that, I don't have interest in this specific project mentioned by OP! If you are investor, or wish to be, you need to DYOR, in the end it's your investment (money) and it will be your profit/loss!


Title: Re: Different level of risk in crypto currency trading
Post by: Yaunfitda on October 26, 2020, 11:38:32 PM
There is always risk involved in crypto, that's why you are seeing that kind of warnings. And there's risk aversion as well, so it's really up to us on how to manage it. So personally, I don't see that there are different though, risk is a risk. The big question is how you are going to mitigate the risk? Do you have plans?


Title: Re: Different level of risk in crypto currency trading
Post by: Kasabus on October 26, 2020, 11:59:04 PM
There is always risk involved in crypto, that's why you are seeing that kind of warnings. And there's risk aversion as well, so it's really up to us on how to manage it. So personally, I don't see that there are different though, risk is a risk. The big question is how you are going to mitigate the risk? Do you have plans?
Yes. Once you're into crypto trading, the risk will always be there. This is the reason why you should only invest what you can afford to lose because in trading, there is no guarantee if you will make profits most of the time. One mistake will surely left you empty handed if not being controlled. I don't think there are different level of risks. The only concern here is how you will take the risks and overcome it.


Title: Re: Different level of risk in crypto currency trading
Post by: justdimin on October 27, 2020, 07:59:52 AM
There is nothing like 'being more volatile than the other', all of them, as long as it's cryptocurrency, is volatile. Last time I checked on eToro they are only trading a few of the top cryptos like Litecoin, Ethereum, bitcoin, etc. And these ones are not even as much volatile the smaller cryptos can be (they are volatile, but what I am trying to say is that they can't be easily manipulated by anyone, unlike the small ones that can easily be manipulated by whales).

So, investing in smaller market cap cryptos carries more risks than the cryptos with a huge market cap. Small market cap cryptos can plummet at anytime, and easily. So if there is any thing such as level to risks in trading cryptocurrencies, then I guess it's what I have just explained here. But all trades are risky.


Title: Re: Different level of risk in crypto currency trading
Post by: Pamadar on October 27, 2020, 09:05:32 AM
As long as you stick with spot trading, it is possible that you will only experience a loss according to the amount of capital you use for trading.
But the risk becomes big when you use the margin trading feature, you can experience a loss much greater than the capital we use. And the
coins themselves have a different risk from one coin to another, depending on the liquidity and volume of the coins.


Setting up plans and having a good insight in regards to types of trading that you'll going to follow.

There's always risk that  accompanied your investment from the first time you enter the exchange, but as long as  you know how to handle it and you are always ready in taking that level your chances to gain from that risk is also high.
Keeping yourself tied with patterns that you are following will make you profitable in the long run, you just need to learn how to manage it the right way.


Title: Re: Different level of risk in crypto currency trading
Post by: Silberman on October 27, 2020, 07:20:34 PM
What is missing is research! Ok you got some warning messages, why didn't OP try to investigate more about it? Maybe there're valid reasons for those warnings, maybe it's a shady project, but if you wish to know more you need to check it by yourself, you can't expect others to do the job for you!
Now I could check more about this specific project and to find out why it's flagged by some services, but I have no interest in doing that, I don't have interest in this specific project mentioned by OP! If you are investor, or wish to be, you need to DYOR, in the end it's your investment (money) and it will be your profit/loss!
Unfortunately many come to this market thinking that money is just going to come to them without making any effort, they just want to invest in a coin, any coin, and then reap the rewards and we know things do not really work like that, the few that are successful investing in new coins are able to pull that off because they dedicate all their free time to read as much as they can about every single project they can find, and after looking at hundreds of projects they finally find one that is worth it and invest their money there and very few people have the dedication of doing something like that and that is why they fail.


Title: Re: Different level of risk in crypto currency trading
Post by: AakZaki on October 27, 2020, 07:46:50 PM
As long as you stick with spot trading, it is possible that you will only experience a loss according to the amount of capital you use for trading.
But the risk becomes big when you use the margin trading feature, you can experience a loss much greater than the capital we use. And the
coins themselves have a different risk from one coin to another, depending on the liquidity and volume of the coins.

You are right about this, spot trading will indeed give you a loss according to the amount of capital and your entry price on the coin you choose. If the price drops to 100% you still have hope that your asset can go up like the other initial prices.

However, it is different if you use Margin Trading, the losses will be greater and can even be affected by liquidity. Margin trading is only recommended for professionals who already understand trading. Don't even try if you don't know the basics. Whatever money is owned will be lost in an instant. Use a demo account if you really want to try it.


Title: Re: Different level of risk in crypto currency trading
Post by: Kelvinid on October 27, 2020, 09:37:07 PM
The volatility feature of the market brings it into a higher level of risk when it comes to investment and much more for trading. As we can see, a lot of trading platforms currently existed in the market but crypto trading is a little bit far from them. If we could ask ourselves, why I should choose crypto trading if there is high-risk waiting for me? it simply because we are driven by our positive mindset, money, and the possibility of gaining more profit is higher also than the others. But the problem is that and mostly the case that it happens to newcomers, they have been losing a lot instead of making a profit due to their own lapses.


Title: Re: Different level of risk in crypto currency trading
Post by: Johnyz on October 27, 2020, 09:44:25 PM
There is always risk involved in crypto, that's why you are seeing that kind of warnings. And there's risk aversion as well, so it's really up to us on how to manage it. So personally, I don't see that there are different though, risk is a risk. The big question is how you are going to mitigate the risk? Do you have plans?
Knowing how to deal with risk is one of the skills that you need in order for you to become a successful trader, and yes all the risk are the same but it increases the moment you decided to take more risk. Making plans and strategies can lessen that risk especially in trading cryptocurrency where volatility is very high. Don’t expect not to lose money instead prepare for it and have a back up plan always.


Title: Re: Different level of risk in crypto currency trading
Post by: Yatsan on October 27, 2020, 09:57:55 PM
Risk is already a common factor existing in this industry for risks are always associated on anything you will do in this industry of crypto. I think the level of risks relies depending upon the coin for they have different price behaviors in the market and the changes on the prices on a span of time. Level of risks can also be associated upon the level of intellectual capacity of an individual to decide and familiarize himself on which crypto coin he will wish to trade. If someone is not that familiar into such coin and that coin was just a new one, then expect that it is a higher level of risk associated on that scenario compared to knowing your chosen coin for trading which is you are putting into lessen the associated risk for you are knowing how you will deal with such risk on that coin that is possible to be encountered along the trading process.


Title: Re: Different level of risk in crypto currency trading
Post by: chaser15 on October 27, 2020, 10:00:02 PM
But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

No need for a banner that must show for every crypto as trading, either stocks or crypto is always risky. There are no safe trades as if everything is that easy, we are all success by now or basically, no trading activity at all.

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crypto on binance they displayed some warning as well which confused me quite a lot...

No need to be confused. Just keep in mind that crypto trading is risky no matter what coins you choose. Just because you don't see a warning or notice on that specific coin, it means they are on another level of risks of crypto trading.

Be used to see it from now on.


Title: Re: Different level of risk in crypto currency trading
Post by: samcrypto on October 27, 2020, 10:09:30 PM
There’s a risk everywhere the only difference is the level of risk and if we are talking about trading cryptocurrency here, expect a high level of risk because you can lose money here in just a day if you make a bad decisions.

The volatility is normal in cryptocurrency, traders love that risk so they can pump and dump their token as easy as they could. There’s a big risk on a new project, and that’s your decision whether to buy or not, as long as you are willing to lose money then you’re already a risk taker.


Title: Re: Different level of risk in crypto currency trading
Post by: hahay on October 27, 2020, 10:25:13 PM
Personally, even though I spend a large amount of money ready to lose but basically I don't want to lose everything, at least if we have management in this risky investment, as much as possible the money we invested back into our wallets with a bad estimate only partially or a few percent and the worst thing is to lose it all. So, the risks regarding the project and the exchange itself I think can be avoided, because as long as you only use reputable and trusted exchanges it is enough for you to minimize the risk, because the next step is back to your own skills.


Title: Re: Different level of risk in crypto currency trading
Post by: Shasha80 on October 27, 2020, 10:49:27 PM
Of course crypto trading has different levels of risk, depending on us choosing coins, trading features and the amount of capital used.
For me, these three things greatly affect the level of risk that must be faced. Suppose we select new coins with popular coins, of course
it is more risky to trade with new coins. Then if we choose margin trading features, of course there is a big possibility that we will lose
all our capital if we do not have good experience and knowledge in the world of trading. Therefore, if you are not professional traders,
avoid using margin trading features, just focus on using spot trading. And the last thing that distinguishes the level of risk when trading is
the capital we use, the more capital we use, the greater the risk we have to face.


Title: Re: Different level of risk in crypto currency trading
Post by: pankowri on October 28, 2020, 01:28:20 PM
Risk is a component of the characteristics of the crypto world. There are several categories of risk pertained to in cryptocurrency. In this virtual world, the risk is spread at every stride. Risk of buying and selling. Risk on the scam in the market, risk in long term investment, and many more here. When you buy BTC that can be happened after buy, the price can befall. And the scammers are aware of stolen money from people.


Title: Re: Different level of risk in crypto currency trading
Post by: Xinarae* on October 28, 2020, 04:14:20 PM
Margin trading is known for the ability to trade larger than the amount deposited. There is a lot of skill required or the risk is high. The meaning of margin trading is that a trader decides that they want to make a trade larger than the capital they have and looks to the platform to borrow these funds to open a larger Etherium position. look This leveraged margin allows you to make higher profits if the position goes in the right direction after the trade. However, the risk is that if the trade fails the amount of loss can be increased.


Title: Re: Different level of risk in crypto currency trading
Post by: Vispilio on October 28, 2020, 07:27:25 PM
If you trade unleveraged, then the risk of ruin is only when the crypto currencies you are holding go to 0 or very close to 0, which is admittedly a considerable risk for many crypto assets.

The level of risk increases exponentially if you like to trade on margin, however, then you have to factor in both borrowing costs (usually taken out daily or 3x daily from your equity) and the liquidation price, which is calculated by both the leverage you employ + the exchange cushion (usually 2-10%), meaning the exchange lending you the margin will always liquidate you earlier than the risk of ruin price because they don't want to be stuck with the risk themselves...


Title: Re: Different level of risk in crypto currency trading
Post by: Tigerheart3026 on October 28, 2020, 08:32:54 PM
yes ur capital is risky for all of cryptocurrency. i don't agree it's an equal risk in all cases of alt coins. there are different risks in the different coins. btc,eth,xrp,tron and top few coins buy and sell risks aren’t similar in any shit coins. haven’t found this features in coingecko it’s very recent implementation?  


Title: Re: Different level of risk in crypto currency trading
Post by: xSkylarx on October 29, 2020, 04:39:31 AM
One question I came across is if there are different level of risks for different cryptos?

Yes there is, some crypto are only driven by their hype and trend. A coin can be popular and good to trade today but after a week if it dumps hard then whales are gonna leave it then they find a different coin again then the cycle repeats. Some are loyal to their projects that even if it dumps, they are still ongoing for some years then make an update. That will become a trend to traders and their price will go up again. It's always up to you to DYOR before buying any crypto. There is always a risk to any crypto you buy.


Title: Re: Different level of risk in crypto currency trading
Post by: TitanGEL on October 29, 2020, 05:41:44 AM
Risk is a component of the characteristics of the crypto world. There are several categories of risk pertained to in cryptocurrency. In this virtual world, the risk is spread at every stride. Risk of buying and selling. Risk on the scam in the market, risk in long term investment, and many more here. When you buy BTC that can be happened after buy, the price can befall. And the scammers are aware of stolen money from people.
The risks are forming in the area outside of your expertise which means that if you do not have foundation or basic knowledge on the type of investment that you're currently doing then the risks are high. The risks can become high or low depend on your skill and intellectual level. In cryptocurrency trading, at first yes it is risky especially if you are new in the mrket but that risks can be lessen through proper experience and learning. A lot of people are buying or putting money on a type of investment that they not fully aware or what we can a risky investments then they will blame whenever they lose the money that they put.

I do not promote or suggest to newbies to do leverage trading because of the risks and I think they should first gain a lot of knowledge and experience in spot trading first before they go in futures. As long as we have proper risk management, we can handle huge risks and maximize the potential upside.


Title: Re: Different level of risk in crypto currency trading
Post by: davinchi on October 29, 2020, 09:28:29 AM
Each person has their own goals as well in the end, which means their actions are usually based on their own ideas of what is going on too. I believe if one person is trying to make a quick money and get rich right away he will not be acting similar to someone who is here who wants to just retire at age of 50 without working after that. These are all different things and that is why I believe they will also do different things as well.

Personally I believe there is a huge potential they could get together on the same middle ground and just focus on how to make most out of what they have instead of trying to overachieve best traders of the world but not just buy/hold/forget system neither. You could have like a savings account interest at banks for example, similar mindset for bitcoin could be found.


Title: Re: Different level of risk in crypto currency trading
Post by: cheezcarls on October 29, 2020, 11:02:41 AM
Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.

I have to be completely honest with you. There are no different risk levels in crypto trading. No matter if you are a newbie, average Joe or experienced freak, the level of risk is the same, which is very high. Even experienced traders are making mistakes in their trading decisions, because nothing is guaranteed.  The only stuff that mattered the most is how we manage our risks financially and how strong our emotions are in case it goes the other way around. Invest what you can afford to lose.


Title: Re: Different level of risk in crypto currency trading
Post by: santiPOGI on October 29, 2020, 11:32:26 AM
I don't know what level of risk in cryptocurrency you are talking about dude, just all I know is that once you decide to invest into
any of the cryptocurrency that means you already entered into a risk portion of trading as a trader here in this field of business.
Without any involve money it can't be called risk, in my assessment to this matter.


Title: Re: Different level of risk in crypto currency trading
Post by: bitgolden on October 29, 2020, 03:58:41 PM
The biggest risk is doing something you are not ready at all. If you are not sure about what you are doing, you are taking a risk that is beyond any logic, you have to know what you are doing for the exact reasons and data points before you do it, if you are going into bitcoin with mindset of "I think bitcoin will be $20k, so I am going to buy now" without any other information in your brain, that is going to cost you a lot of money.

However if you end up with "I believe bitcoin will be $20k, because this will happen and trigger that which causes these which should have consequences of price increase" that would allow you to be a lot more ready for trading. So, in order to remove risk (or at least make it minimal) you have to make sure that you check under every single rock before you make a move.


Title: Re: Different level of risk in crypto currency trading
Post by: jrrsparkles on October 29, 2020, 04:44:43 PM
Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.

I have to be completely honest with you. There are no different risk levels in crypto trading. No matter if you are a newbie, average Joe or experienced freak, the level of risk is the same, which is very high. Even experienced traders are making mistakes in their trading decisions, because nothing is guaranteed.  The only stuff that mattered the most is how we manage our risks financially and how strong our emotions are in case it goes the other way around. Invest what you can afford to lose.
Same level of risks but experience may guide people to tackling the risks we are facing. We shouldn't set to any coins when we are a trader because crypto is unpredictable and volatile so we need to keep ourselves busy with picking up the right coins, after every profitable trades.


Title: Re: Different level of risk in crypto currency trading
Post by: matchi2011 on October 29, 2020, 05:35:24 PM

I have to be completely honest with you. There are no different risk levels in crypto trading. No matter if you are a newbie, average Joe or experienced freak, the level of risk is the same, which is very high. Even experienced traders are making mistakes in their trading decisions, because nothing is guaranteed.  The only stuff that mattered the most is how we manage our risks financially and how strong our emotions are in case it goes the other way around. Invest what you can afford to lose.

With such high volatilities this market have, each time you enter your position considered as risk. You are correct with levels of risk as there's none in terms of positioning as it's every traders knowledge that matters.

Whatever you directions you take you always needs to consider how you'll be able to take the piece of profits, your capabilities to anticipate the movements will be your advantage you have to keep enhancing it.


Title: Re: Different level of risk in crypto currency trading
Post by: crwth on October 29, 2020, 05:42:34 PM
There are things to consider before you get to trading. Below are the most important parts.
  • Know your risk - how much capital are you going to invest. Never invest rent money etc.
  • Know your Market - is its derivatives? Is it a spot market? Futures? Etc. Then learn what you can do with it.
  • Form a trading plan - never head on to battle without a strategy. The same goes for trading.
  • Be emotionally ready - losses are inevitable, never hold on too much and have risk management

I think you need to be aware of what market you are playing to determine if you will take the extra precautions or not. It depends on you. There is a lot of resources that you could read so you could improve. Take charge of your knowledge.


Title: Re: Different level of risk in crypto currency trading
Post by: pankowri on October 29, 2020, 06:40:22 PM
Risk is a component of the characteristics of the crypto world. There are several categories of risk pertained to in cryptocurrency. In this virtual world, the risk is spread at every stride. Risk of buying and selling. Risk on the scam in the market, risk in long term investment, and many more here. When you buy BTC that can be happened after buy, the price can befall. And the scammers are aware of stolen money from people.
The risks are forming in the area outside of your expertise which means that if you do not have foundation or basic knowledge on the type of investment that you're currently doing then the risks are high. The risks can become high or low depend on your skill and intellectual level. In cryptocurrency trading, at first yes it is risky especially if you are new in the mrket but that risks can be lessen through proper experience and learning. A lot of people are buying or putting money on a type of investment that they not fully aware or what we can a risky investments then they will blame whenever they lose the money that they put.

I do not promote or suggest to newbies to do leverage trading because of the risks and I think they should first gain a lot of knowledge and experience in spot trading first before they go in futures. As long as we have proper risk management, we can handle huge risks and maximize the potential upside.
Your viewpoint is straight forward and very clear to me that you are not encouraging the newbies in trading. I am also support this and the same thing I usually do. I see many of us can not make successful trading even once in a month. So it is not an easy task. Risk is everywhere. We need to adapt to it.


Title: Re: Different level of risk in crypto currency trading
Post by: sambuddha on November 01, 2020, 12:54:58 PM
There is always risk involved in crypto, that's why you are seeing that kind of warnings. And there's risk aversion as well, so it's really up to us on how to manage it. So personally, I don't see that there are different though, risk is a risk. The big question is how you are going to mitigate the risk? Do you have plans?
Knowing how to deal with risk is one of the skills that you need in order for you to become a successful trader, and yes all the risk are the same but it increases the moment you decided to take more risk. Making plans and strategies can lessen that risk especially in trading cryptocurrency where volatility is very high. Don’t expect not to lose money instead prepare for it and have a back up plan always.
I agree with you 8) Successful traders understand the importance of risk management. Trading is inherently risky because it is a zero sum game. Every dollar you gain through trading represents a loss on someone else’s balance sheet. A losing trader has no trading plan. This is the most common mistake, you should not make it))


Title: Re: Different level of risk in crypto currency trading
Post by: Silberman on November 01, 2020, 05:41:16 PM
There’s a risk everywhere the only difference is the level of risk and if we are talking about trading cryptocurrency here, expect a high level of risk because you can lose money here in just a day if you make a bad decisions.

The volatility is normal in cryptocurrency, traders love that risk so they can pump and dump their token as easy as they could. There’s a big risk on a new project, and that’s your decision whether to buy or not, as long as you are willing to lose money then you’re already a risk taker.
The biggest difference between a losing trader and a successful one is how they manage risk, the losing trader has no idea about what risks he is taking, sometimes he will take very little risk and sometimes he will take a huge risk, sometimes the huge risk can payoff and this makes those traders even more greedy but sooner or later they will lose and the losses will be so massive that for the most part that is enough to make them get away from this market, in comparison the successful trader knows when there is a huge possibility of getting profits with a low risk and avoids to put himself in situation in which he will lose a great deal of his capital, so even if he losses from time to time he keeps most of his capital and then when the market begins to go up very rapidly he is not afraid to take advantage of the opportunity that has presented itself.


Title: Re: Different level of risk in crypto currency trading
Post by: TheUltraElite on November 06, 2020, 04:24:59 AM
Everything has risk can go to zero, you have to deal with risk until you're going with crypto currency trading. I've been in the crypto exchanging business for some time now and I attempted many security estimation to limit the danger but nothing make me happy. I recommend you join a decent trading signal group those are providing good calls for both beginners and experienced crypto traders.
I appreciate that you did security estimation but you are unfortunately quite correct that the risk can not be removed and it is present in every aspect of life. What can be done is that traders undertake less risky investments and then modify them with time.

However you are wrong about signal groups. They are scam groups because they pump some shitcoin that the owners of the group baghold and then sell it off when asking the members to buy. None of them are honest and you will be stuck with some random shitcoins if you follow them.


Title: Re: Different level of risk in crypto currency trading
Post by: yohananaomi on November 06, 2020, 05:12:16 AM
Hi,

I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.

But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro,  but it doesnt appear at all cryptos...)

I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...

If anyone could shed some light on this that would be appreciated.

I have to be completely honest with you. There are no different risk levels in crypto trading. No matter if you are a newbie, average Joe or experienced freak, the level of risk is the same, which is very high. Even experienced traders are making mistakes in their trading decisions, because nothing is guaranteed.  The only stuff that mattered the most is how we manage our risks financially and how strong our emotions are in case it goes the other way around. Invest what you can afford to lose.
Same level of risks but experience may guide people to tackling the risks we are facing. We shouldn't set to any coins when we are a trader because crypto is unpredictable and volatile so we need to keep ourselves busy with picking up the right coins, after every profitable trades.

I think we have to admit that crypto is full of very high risks but the experience of doing and taking further actions will certainly also affect, even though the level of luck is also very decisive and quite high.
So sometimes it is true that the colleague said above that beginners or those who have been for a long time can experience mistakes and sometimes those who are doing business for the first time make a good contribution to themselves

but to be honest, experience is the most usable price because you can do it with predictions that you have experienced at least be able to do something that can be profitable even though it is not absolute.


Title: Re: Different level of risk in crypto currency trading
Post by: palle11 on November 06, 2020, 02:40:33 PM
The biggest risk is doing something you are not ready at all. If you are not sure about what you are doing, you are taking a risk that is beyond any logic, you have to know what you are doing for the exact reasons and data points before you do it, if you are going into bitcoin with mindset of "I think bitcoin will be $20k, so I am going to buy now" without any other information in your brain, that is going to cost you a lot of money.

However if you end up with "I believe bitcoin will be $20k, because this will happen and trigger that which causes these which should have consequences of price increase" that would allow you to be a lot more ready for trading. So, in order to remove risk (or at least make it minimal) you have to make sure that you check under every single rock before you make a move.

In your second paragraph, I understand what you are talking about is proper planning and research into project in a project to invest on. This is correct because someone who does not plan, will hardly get to success. We need better research and analysis of a coin before we do the investment.


Title: Re: Different level of risk in crypto currency trading
Post by: bitgolden on November 06, 2020, 03:06:57 PM
I think we have to admit that crypto is full of very high risks but the experience of doing and taking further actions will certainly also affect, even though the level of luck is also very decisive and quite high.
So sometimes it is true that the colleague said above that beginners or those who have been for a long time can experience mistakes and sometimes those who are doing business for the first time make a good contribution to themselves

but to be honest, experience is the most usable price because you can do it with predictions that you have experienced at least be able to do something that can be profitable even though it is not absolute.
I suppose the biggest difference could be the reaction time and method between newbies and veterans.
Anything could happen in crypto world and doesn't matter if you are a newbie or veteran you could be in a big loss if you just happen to be at the wrong place at the wrong time and sometimes there is no way to avoid that.

However if you are a newbie you could react to that very badly and make something bad even worse, whereas if you are a veteran you know these things happen and it is not really surprising so you could react to it a lot more calm and just try to get out with little loss without making a big deal.

Even something as simple as having a stop-loss could be a veteran move, not all newbies know how to use it so they end up with making a loss while veteran gets out way before them.


Title: Re: Different level of risk in crypto currency trading
Post by: BuNga_cute on November 06, 2020, 09:13:58 PM
I have to go through a difficult way to understand the different levels of risk in crypto trading. I lost quite a bit when I tried margin trading,
It is best to avoid using margin trading for traders who do not have good trading skills and experience. If you won't suffer the loss that
I've experienced, only focused on spot trading, which has a lower risk than margin trading.


Title: Re: Different level of risk in crypto currency trading
Post by: FanEagle on November 07, 2020, 04:31:32 PM
I have to go through a difficult way to understand the different levels of risk in crypto trading. I lost quite a bit when I tried margin trading,
It is best to avoid using margin trading for traders who do not have good trading skills and experience. If you won't suffer the loss that
I've experienced, only focused on spot trading, which has a lower risk than margin trading.
If you consider bitcoin only trading along with long-term holding possibilities then there will be no risk at all compared to margin trading. I agree there cannot be any trading with no risk, but bitcoin trading with long-term plans might be eliminating all your risks as bitcoin market is always heading toward big prices in long-term which makes it possible. When traders are risking within calculated risk limit then the chances for enjoying successful run will be higher even in this crypto space regardless of its high volatile nature.

Accept the losses and look for new opportunities but you must take your more time on finding new opportunities then there will be a lot of chances for you to get back your lost capital. Definitely it will take more time but there are lot of chances for it. Never give up and always look for new opportunities :).