Bitcoin Forum

I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.

Can we point out the risks that one faces in investing crypto assets based on these:

1. As a retail investor

2. As an asset manager (hedge fund business)

3. As a trader.

Answer to every single point: the volatile nature of cryptocurrencies, as per usual. If you go in with a huge allocation and it ended up crashing down temporarily/permanently, then you're probably screwed depending on your circumstances and depending on which specific coin/token you actually invested in.

As for a trader, well, if you use stop losses and you trade really well to start with then you should be fine.

Thank you.

Stop loss and take profit options should really be helpful to minimize the risk and maximise the profit in either trading or holding.

I think that helps to safe from  crashing out totally but investors who like hodling like I do have no worries if you are a short time hodler. Having your coins in bitcoin or Ethereum is more financial appropriate for the crypto currency business than having it scattered in altcoins that have no real value.

This is looking you can take the thread to trading discussion board for the traders delight.

Don't put your portfolio at risk because you use leverage.

You must allocate most of capital to Bitcoin and some altcoins that are backed by crypto exchanges. If crypto industry is here, and if crypto exchanges survive in the market, those altcoins will grow.

Why grow? Because when the industry grows, crypto exchanges will grow too and their own-built coins will grow in value.

As mk4 said, it is always going to point out to a single factor which is the unstable price.

For traders, it is more of technical stuff depending on how s/he is responsible to his/er own fund. It would be the hacks that happens in exchanges and one worth mentioning under those hacks is the MITM or Man In The Middle attack. It is not directly price-wise risks, but you know what since you are generally talking about all the risks I just put it in here as well.

For me as a trader there's always a chance to minimise losses by using stop loss, but when it comes investing probably it depends, wherein if you make technical analysis first before you put money probably you can assure your money is safe from the volatility or if there's a massive down in the market, especially if you get the real strong support level of the coin because for sure it will always bouncing back and will seek for new resistance for long time, but monitoring the growth still a must for investors.. Unlike traders by using stop loss it makes very comfortable..

As a trader, the risk that we face is that we're unsure whether we did the right thing right after we buy the crypto and at the same time the risk of hype, where some traders might be too late for the hype. Another risk which is for everyone is the volatility, it's a neutral thing that can't be tamed but you will be able to use it to your advantage.

I think as others have already pointed out, there is volatility risk for each one of these.  As a retail investor your risk becomes a possibility at a couple levels, and being a retail investor doesn't mean you're not a "trader".. the two can go together.  You have risk when you buy any investment and bitcoin is no different.  You have the possibility of risk whether you hold for a short amount of time or long.  As an asset manager you've got a fund to manage and other peoples monies at stake.  So, there much more risk so to speak in that scenario.

The problem is that many traders do not use that feature instead of selling their coins without using stop loss and often sell at a lower price. That makes them unable to manage the risk from the coin and if they do not learn for more, they will lose a chance to make a profit later. Having a portfolio in crypto means we need to know that the price will always be volatile and it is our job to minimize the risk but it is not easy as that will need more experience to reduce the risk.

If you are not sure what to do, about the coins you bought at that time, then you don't understand how to do research before investing or buying coins. Research really needs to be done, doing analysis is the first thing that must be done.
the risk of hype will always occur. For brands that are late in the hype and continue to buy at high prices, it is a risk that must be accepted. Crypto price fluctuations are very fast due to high volatility.
High volatility can be put to good use for experienced traders, they will benefit from every ups and down of the coins traded.

But you are putting your portfolios at more risk than losing value. Trading and holding are different activities in terms of timeframe, you have to do it separately. Centralized exchanges are not good for holding long term. Sometimes centralized services turn out to be sensitive to accounts that are suddenly active after a long period of "silent".

Honestly there are risks in every single investment that you are making and when it comes to bitcoins I think the top two would be :
1. legal issues
( From the side of the government)
2. Issues regarding volatility and manipulation as well
...
The fact is not all countries are crypto friendly and thus at the end of the day people might have to pay huge taxes or even sell their assets before time with the government suddenly decide to ban it. ( They usually give a time period but that's only bad since the price keeps going down eventually and you end up in a loss )

The Volatility is something that is not only a boon for the traders but at the same time it might cause a lot of probelms as well, since if you are not vigilant, you can loose a lot, faster than ever. Therefore if you do know how to use it, it's perfect, but if you are a new trader then you have to take it slow and learn from your mistakes along the way.

Most people who trade are also holding, therefore your portfolio is actually in your own hands, you can decide to tackle it from different angles and when you think you are loosing a lot, just stop and see where you are doing mistakes, I think it's all about learning and experience.

1. A retail investors has something called an urgency risk, generally, these people tend to HODL but there could be a situation where these people need money but at that time there is a big slump or bear run going on in the market and this person has no other option than to withdraw money from the market, This is a huge risk that a retail investor carries.

2. An Asset Manager obviously carries the Unsystematic risk, they try to beat the market in the long run but if a person who could have simply held on to his investment and not sold makes a similar return to what an Asset manager gives, this is a complete failure on part of the asset manager.

3. A trader carries the volatility risk in the market, that it's strategy might have become obsolete due to change in the trend of the market therefore no matter what his trading would always result in losses.

Retail investors should only allocate a small portion of their total assets to cryptocurrency, say 5-10% because it has such a high volatility - may consider it a replacement for gold in your portfolio. An asset manager would also hold a rather small portion, unless their fund was specifically designed as a high risk and potentially high return vehicle - that way investors would be aware they could lose a large chunk of their money if they park it there. A really profitable trader can make money in any sort of market as long as long and short positions are available, however the amount of people who are successful at this activity are probably in the hundreds or low thousands across the whole world, plus it can be extremely stressful.

It does not matter what kind of investor you are. It's because all kind of investment is included in risk. We can't avoid the risk due to the volatile behavior of cryptocurrency.  The risk totally depends on how you are managing your assets. If you are just a trader then you have to think about how you can make a profit within a short time. If you are an investor of the middle term then you have to take the advantage of the volatility. If you can't take advantage of the volatility then you are at risk. If you are a long-time investor then you have to wait with patience, but everywhere is risk involved because cryptocurrency is unpredictable actually, whatever we predict that is not accurate ever.

As an investor, of course, I prefer bitcoin as an investment because it is one of the most popular and well-known coins. I will hold it for longer and if things go bad as long as there is a time, bitcoin will definitely come back to go up, so I will hesitate if I choose a coin except BTC.

As a trader, in general there is always a stop loss option to prevent losses where when something bad happens it will definitely have a quick impact, I certainly need to analyze certain coins where to trade but in this option there is still a lot to do including by entering hype and also other fomo.

The point you make about adding a stop loss to trades being a way of protection against unnecessary risk id true. However, the opposite is true.

Because the crypto markets are so volatile a stop loss can trigger liquidation before shooting up again, yes, it happened in the past that profit in this way was not maximised and thus that window of opportunity was missed. So a stop loss should be regarded with both its pros/cons, a stop loss is not a safe haven for traders but a strategy that comes with its own risk and benefit.

Just be an individual that invests on it. No one to hold your asset and you're the one that's responsible for every action you do with your portfolio.



I don't have experience in asset managers and no plans of using any of their service.

it no matter who you are whether you are a retail investor, a fund manager, or a trader the risk is the same, you lose money/clients when you don't know when to exit your trade when the market is beginning to collapse so the outcome is the same, loss.

the risk is what drives the thrill in trading cryptocurrencies, you enjoy the ride or loss more when holding the coins for a long time. determining when to buy and sell will always be a good tool for us.

Never said stop losses were a safe haven though, because it never was. I mean, is there even a single trading tool/function that's literally just 100% upside lol? It's just a tool that you can use to "protect" yourself from heavy volatility, regardless from a heavy upside or a heavy downside.

risky always happen on every investment not just in crypto but yes crypto have high volatile rather than stock or other investment instrument

but you can always minimize the risk with some way like all people above me said

The risk will always be there and it is how we manage the risk not to become bigger and with our experience, hopefully, we can reduce the risk and even make a profit. The volatility of coin prices will be a risk for everyone if they decide to invest in crypto, whether they are a retail investor, an asset manager (hedge fund business), or a trader. As long as we can learn how to manage the risk, it will not be a problem, and we will have a chance to grow our portfolio.

That is the importance of having good risk management in crypto investments, so that we can face highly volatile crypto prices. So when the crypto price
goes up and we've made a profit, don't be greedy by waiting for the price to rise even higher, we must immediately take profit. So the risk of us
experiencing losses can be avoided, we can also invest in some coins to minimize the risk. Because if the price of one coin goes down, we can just
make a profit from the other coins. Those are some examples of overcoming very high risks when investing in crypto.

Yeah, stop losses aren't about safety of your trades, it's about protection of your bankroll. Why should your entire bankroll sacrifice itself for one small trade which was supposed to make a single percentage profit right?

And people complain about volatility hitting their SL but let's face it, when it hits your TP, we're all just as happy :)

As we know that cryptocurrencies are like a roller coaster that can make our hearts beat fast or sometimes stop, if we don't check for a week then we can be sure that crypto assets can go up or down by tens of percent, this is a high risk so I recommend investing in crypto if you already have good finances.

When it comes to investment, risk management is important and makes us careful to manage it. But many people can not do that instead will get many effects when they see the price goes up or down. We know that many of them panic when the price is down and decide to cut losses to reduce the big risk, but some are not doing anything except wait for a while. The greediness can also come to us, especially if the price rises even higher and makes us delay taking a profit. But in the next hour, the price drops and makes us regret not selling at a high price. We really need to control ourselves to anticipate or manage the risk and take profit at the right time.

If you're #1 or #2, the biggest risk if the bear market coming. Bitcoin stayed low through most of 2018 and 2019, and not everyone can afford to see the investments being so low, and yet keep hodling and waiting it out. It's not so much about day-to-day volatility because that, IMO, is irrelevant for this sort of investments, as it is about a market tendency that can last for a few years. As for traders, you just need to be very skilled, I guess, and then even a bear market isn't a problem because a key to trading is learning to use volatility to your advantage, and there's always some positive along with some negative price movement during any market situation.

market volatility, news, market capitalization, market volume so many of this factors affect the portfolio of any crypto investor be it a trader, a retail investor, an asset manger, trader the all get trapped in the whale most times this factors plays so intensely on their emotions steering up greed and endless market imagination

It will completely depend on the trader— stop losses can be used for preventing further potential losses on individual spot trades, and at the same time for protecting your total bankroll from leveraged trades. It's not one or the other.

 The value of crypto is volatile so that the risks we face are greater especially we as large investors of course when experiencing a decline we will feel chaos and this is very dependent on what coins we are investing in if the coin has high potential then this is not too burdensome because it has a high possibility to increase again, if we want to reduce the risk then the choice of coins that we want to invest must really be monitored properly perg Put the price on.

First you need to understand that there is risk everywhere. For example if you invest in stock or securities would you not have the risk losing money if the stock or shares goes down ?
Same is with crypto currencies where you can lose too in case the bitcoin/altcoin dump. The real winners are only those who invest and trade with proper risk management.

There are risks in every investment or any venture in life. The point is to minimize and mitigate risks.

A retail investor is looking for quick earnings through profit from price variations. They will face risks of price volatility, but this can be minimized by entering at a lower price than the market price.

An asset manager manages the assets of another business. They are not directly owning those assets but is paid separately. Even if the assets drop in price they will be paid what they always are. However they have to diversify portfolios in order to weigh out low performing assets and weigh in high performing assets. This is not as easy as it sounds.

1 and 3 are more or less same. But talking about day traders, they face more risks than a retail investor and market volatility is more in day trading/short term than long term.

But I'm not saying it's one or the other. Totally with you here:) If you see my response it was to your comment about stop loss not being a safe haven, that is, it's not to make your trades safe, it's to protect them from further risk, and to protect your bankroll. So yeah, it's protection and risk reduction is all. That's why I see SL as a seatbelt/airbag. It's not optional, I would never drive (trade) without it.

The main risk of this market is volatility and it concerns traders first of all, as investors don't care about short fluctuations.
As for investors, one risk I can think about is the problem of storing your assets. The safest way to store your bitcoin is cold wallet. One more important thing is to keep your keys and passwords in a safe place, as despite losing your cold wallet, you can recover bitcoin if you remember seed phrase.

I agree that controlling emotions is also important in crypto investing, don't let our emotions overwhelm us when investing. As you explained,
where quite a lot of people panic when prices suddenly fall, they will choose to cut losses. Even though if we wait patiently and hold the coins
that we have, the market will recover soon, the most important thing is that we invest in potential coins. Then related to greed I have also
explained, crypto is an asset with high risk, so don't be obsessed with big profits. Most importantly, if there is an opportunity to take profit,
do it immediately. Especially if the price has gone up very high, take profit immediately. Sometimes the opportunity doesn't come back and
we will regret it if we miss the opportunity to make a profit, just because this greed generates a large profit. That's the importance of knowledge,
then learn everything about the crypto world before deciding to invest in crypto, so we can know what to do when investing in crypto.
Because we already understand how the crypto world works.

As a trader, the risk is always your partner because you're making some decisions where you might lose your capital but you can also increase it with higher chances. The only problem here is if you don't know what you are doing and you only follow the trend when the price of a certain coin is increasing. To be honest, if you don't take some risk in trading, you won't get anywhere because taking risk is taking some personal experience where you can use it in your later decision which will become your main capital with your money.

In order to be successful, all there types of crypto investors (Retail, Asset manager or trader) has to follow the basic principal of money management. No matter how much money you ca afford to invest or how good trader you are, without this money management there is no way to gain success in the long term.

I think that the risk is the same for the different kinds of investors,if we are talking about a 100% cryptocurrency portfolio.
Why do you think that the risk will be different for a institutional investor and for a small crypto trader?
If the portfolio is filled with different kinds of financial assets,and the cryptocurrenies are 5% only,then the risk is way lower.The big investors usually have big and diversified portfolios,so the risk of having Bitcoin in their portfolios is lower.A small crypto trader usually isn't building crypto coin portfolios,he is more focused on day trading.A portfolio,which consists of 100% Bitcoin and altcoins is pretty much pointless,because Bitcoin and most altcoins have the same price pattern.
 

My answer is in 3 things you if all things are equally risky. because in this cryptocurrency market it is very volatile and disappears maybe overnight you wake up that coin has disappeared or is dead no longer active. This is no one can predict that the risk is inevitable. The first thing we should do is to minimize our own risk and learn how to properly manage our investment capital, gain experience and knowledge about the crypto market.

We can search for many lessons about how to minimize the risk in crypto and deal with the volatility, but we need to learn how to do that. The risk will be there in any investment type, not just in crypto, so if we can manage the risk not to become bigger, we will not have any problem using crypto. Besides that, we need to know how much money we will invest in crypto so we do not lose much money.

The same risk of volatility is what all three of them are going to be facing, if you’re a day trader you’re running the risk of losing your money while you’re trading if you don’t know how to trade or maybe the market wasn’t just in your favor for that day. Then if you’re retailer, well, it’s still kind of similar to what you’re going to face when you’re a day trader, you’re facing that risk of volatility and losing money as well, unless there are other ways that you can cover up for what you’re losing. Then finally being an asset manager, still the same thing.

But, I don’t think this is going to be a case whereby those you are managing their assets will blame you because no one can hundred percent predict the market, it’s a really difficult thing for anyone to do.

I understand your apprehension, let me guess - you had some altcoin that went in this manner at some point of time during your trading timeline?

To be honest, you cant expect anything better from altcoins. Majority of them are very high risk assets. Compare them to bitcoin which has a volatility range of 5-10% only over few years, bitcoin becomes the ultimate coin to own for the future, not altcoins. Whatever the altcoin teams say and whatever they promise, they are carrying risk beyond you can imagine. The legal help is almost none when the project decides to shut down and so and therefore your protection as a backer is zero.

Simple put, invest in bitcoin at lower prices. Then you can sleep for the next 10years and see the price rise and you will be making a lot of profit by just hodling it and if possible cycling the coins through bull and bear.

Basically, they all run the same risks of losing their money while investing in cryptocurrency. But, then I think there is more risks when it has to do with being asset manager, because you’re going to be managing assets that belongs to public (that is to say other investors), and since they are all relying on you, you’re going to have to be very careful while you’re doing to avoid any problem.

As a retail investor or trader you’re doing it for yourself. A retail investor is likely someone that would buy bitcoin and hold it for a long term and then buy again whenever they have the money to buy any more. Then a trader is always there and trading bitcoin and other cryptocurrencies on a steady and there is much risk of them losing their money if they should predict wrongly.

All businesses and investments have risks, as we know that investing in cryptocurrencies is like a roller coaster, rising and falling prices make us often surprised, but we can use this to get big profits, the most important key to profit is to be patient and never sell at a price. make a loss.

we know that bitcoins is digital decentralized crypto currency which mean its unregulated and we also know that the value fluctuates a lot , which makes it a high risk high reward asset ,
Although the returns on investing in cryptos are astonishing high but we can  never be sure about cryptos crashing , the chances are low but they aren't that low to be ignored , the value highly depends on the supply and demand ,
I don't think many retail investors and asset managers would opt crypto for big amounts considering the risk , but for traders they can just invest in any other crypto which is more stable and are regulated .
 

Good thing you have understood this. Most newbies entering this market are coming from hyped shills who promote altcoins that are dying out. Eventually these newbies get fooled into buying those shitcoins without learning about how the market works. Doing a little bit of research can save a lot of money in this market. But without prior knowledge of speculative asset trading and how things work this can be bad for many new entrants.

Big or small amount is a relative term. I guess people understand the market and see how it moves first before increasing their average volume. But it is true that risk takers will always go big no matter what, their appetite is much larger. Retail investors are likely to be more cautious.

Some cases of loss according to them wrong analysis and rush to make decisions. Judging from the price movement of Crypto itself, many people speculate in trading, regardless of the analysis they have done before deciding to open buy. Actually there is nothing wrong in analyzing if the knowledge of the market is broad and already has skills in the market. Talking about profit, no one can guarantee, but the profit ratio is bigger if based on good analysis.

you can only have good analysis if you are very familiar with the coin you are trading with. if you are just blindly following the fud in the market, you can easily lose your hard-earned money. whether you are a retail investor or asset manager or trader, the knowledge about the coin you are trading with is very important, as it will give you insights on where the coin is heading.
also, one thing that i noticed is you should follow or subscribe their social media channels, as sometimes they will give updates or hints on what's going on that you can't find on their thread here. so some of the developments have an impact on their price, so it is better to keep updated with their progress.

I don't see any difference between investing as a retail investor, asset manager or as a trader. They all face the exact same risks everyone faces which is volatility. The crypto market is very volatile. The price may go up or down within few seconds. The risk is less if they are willing to invest and hold coins for long term. Coins like Bitcoin and Ethereum will give them a good profit. There is also the regulatory risks. Any new regulations added by the government might cause problems to current investors.

Yes, it's true that everything has a risk. The risk that can be obtained from the crypto world such as investors or traders is the crypto market that goes up and down. This ups and downs crypto market makes them have to be able to think carefully to be able to sell or buy coins properly. besides that they also have to be able to choose good coins to invest or trade. This risk can be overcome if we are careful and alert. do all that with careful thought and also do not rush.

There must be risks in the world of cryptocurrencies, whether investing or trading. Both are equally risky, but there are things you can do to reduce the occurrence of these risks. In trading you can use a stop loss, this point should not be forgotten because it is really important to reduce losses. Besides that, you also have to determine the right time when selling or buying coins. What is also often forgotten by many traders is usually their emotional control is trapped and finally emotions, therefore you must often practice your patience.

When you are making such rush decisions just because you are in a hurry on making profits then thats really a big mistake for you to make.
You cant be sure on what would happen next and its just right that you would really be minding about the risk involved and would really be
that careful on making actions just because you do know that you could lose money if you are really that careless or would make actions
without any basis. You are the ones who would make out such plans and decisions according on what you had learned.

I will answer this question a bit. I hope this answer can help many people

1. As a retail investor: the risk you get is speculation when prices decline and investors can't do anything. because the nature of investors is to wait like a holder

2. As an asset manager (hedge fund business): when the market is unstable this will disturb the asset manager owned

3. As a trader: when the market dumps the trader must be able to control and manage assets well. because this is the advantage that traders can switch from one crypto coin to another at any time to reverse the lost profit with various trader techniques

     If you really think about it, there will always be risks in whatever investment you make. The only thing that makes the difference is your knowledge about a specific investment, how much you know about it; the do's and don'ts. Another thing would be how you carry yourself as an investor and how you manage your portfolio and risks. Knowledge is one thing, but knowing how to apply that knowledge is a whole new level that would need actual experience or mentoring. Anyways, hope you understand what I am trying to point out.

All investments have risks, and cryptocurrencies are a type of high risk investment, but we must always be vigilant because many things can happen in cryptocurrencies, to reduce risk I will hold the top 100 rankings, while for big profits in the short term I will buy new listed coins .

Are you confusing risk with volatility?

This is not Road-Rash. The risk in crypto comes from the government's policies on bitcoin which are grey and the price changes. These cannot be overcome by going slow, the risk remains same.

To a large extent the buying and selling points are important and they determine how much profit you end up making. The asset managers are facing everyday changes in price so forget them - they dont even get to see a good profit being pushed into the field at bear or bull. But the retail investors are having an advantage here being the ones to enter the market at their own sweet time.

Make that top five. Top 100 is 95 shitcoins in my opinion.

A common mistake that I did not expect you to do. Some less experienced users might have this notion but you should not. Newly listed coins are very well shitcoin 99% of the times. Better to keep your money focused on bitcoin. Your returns might not be huge but similarly your losses will also not make you bankrupt.

with knowledge we will understand the risks and rewards, so that we will be able to take a realistic view of the type of investment that we do. like bitcoin, which has a high fluctuating nature, so we are required not to panic sell, and if we can manage it then we will get the rewards we want, but to take profit we must also be realistic by putting aside greed

Beside the price risk, to me among the biggest risk is losing your keys as an investor with a long term goal in mind, actually am currently facing such delimma, bought some Tokens back in 2018 at a very cheap price, now tokens have valued alot but my keys seem not able to open the wallet of the token, seem I must have copied it wrongly or so, now I can only see what's on wallet without access  ???, not a good situation.

Every investment is risky but remember," the more the risk the bigger the profit" if you know how to handle your investment. Also you can minimize risk just learn how to do it. Also just choose from the top coins in coinmarketcap to make sure that you will earn and minimize too much risk. The volatility in crypto has  a good return because we can earn through this. Avoid investing huge amount in new coin without utility or use case.

True, all of them bears the same risk.

And whatever they are in career, they're just taking the same risk as what we're taking as well. In cryptocurrencies, the same risk and it's depending to the tolerance of the investor.

And reducing the risk is better if you do research.

I know most people find crypto hodling better and would disagree with me but I think trading is rather less risky. We are not yet very sure about the future of cryptocurrency. Imagine keeping holding on to it in the hope that it will rise very high. When it starts falling you still believe that it will rise again but the opposite happens. There are real examples when many cryptocurrencies couldn’t climb back. I prefer benefitting from price movements that happen during the period of a few days or weeks.

Every investment or trade carries a risk of loss, including investing or trading cryptocurrencies. What needs to be considered when entering the crypto world is to minimize the risk of these losses, for example buying Bitcoin and selling it at the right time, this is very important because it will affect your investment and trading. Apart from that, investment plans and management are also required to fit your trading roadmap. We cannot eliminate the risk of loss, but we can minimize the loss.

In general, the common ground that affects and positions at disadvantage/risky side all of the three kinds of people you have mentioned is volatility. The fluctuation of market price is definitely the main factor that could risk one's asset. It's the nature of crypto and we are all aware of that. It just depends on how we will manage and cope with it to our benefits.

As a retail investor, the volatility could affect your decision making in investing. There are times that the position is low or high depending on market demand. Sometimes, the price value of bitcoin in the market seems to be 'low' but it isn't it. And if you happen to invest in high position, you'll have a feeling of regret later. Since you can't really withdraw it after a while. You'll have to wait for the price to climb. Personally, if you're an investor for long term, I guess volatility brings you less risk. Unless you will be FOMO-ed.

As an asset manager, the volatility could make a huge impact to the account holder's portfolio the moment things go the way you perceived it to be. If ever things don't happen like what you predicted, you will be in a trouble. So you have to always have a plan B as a way out before it's too late.

As a trader, volatility could either make or break your asset. You should always watch the chart trend of pump and dump and do technical analysis as a basis of your decision. You should know when to take profit and when to cut loss. If ever you'll just hope for the best despite seeing that the position is going nowhere, your assets will be liquidated.

There are so many keypoints that I haven't mentioned here yet, but these are the things that first came into my mind. Hopefully, I gave you helpful insights.

this differ in what is our main objective in investing here in our market.

if you know how to trade then do it, but if not then best to HOLD.

actually that is the risk we must take and also those are the risk taken by the Billionaires now who trusted this currency since day one.
Never invest in coin that has no future , i mean those coins that has been created solely for the benefits of the team and not the whole market.

There are so many risk in crypto asset portfolio . Just like scammer can produce there own tokens and thay grab the money of investors and ran away . And other one is when you link your wallet with other apps . Than hacker can easily clean your wallet.  So be careful about your portfolio.

These things are client-side problems that can be overcome by being vigilant, doing due diligence when investing and keeping your devices safe from malware. Easy to speak but most people dont end up taking preventive precautions and the first attack only makes them careful.

For a retail investor and trader, this can be devastating. For a asset manager, the fault is from their side, but an asset manager will already have learnt the basics on how to keep the assets safe from theft before joining.

But this is just one risk in crypto. The speculative risk is what is more happening everyday on the market .

I think majority of the stories of someone investing their life savings of entire property on bitcoin, are only stories to put risk-taking traders at bay and not real at all. Take them with a bit of salt, invest responsibly.

That is a good idea, but keep the prices on check, not every month will have a proper price to buy at, during such times - just hold the fiat.

Both retail investors and traders may not need to hold bitcoin so that they will never need to bother about the fluctuations of bitcoin markets but if the asset manager is about holding bitcoin for long period of time then they should plan of for more than four years of holding so that they could beat the fluctuations of bitcoins as bitcoin is known for growing up at least 10x in every four years.

By long term holding, we can eliminate the risk factors involved in bitcoin investment please note that only when you are holding bitcoin for months to years then you will get affected by its fluctuations at the same time if you are planning for holding for 4 to 8 years then you can get more chances to come out in profit by beating all the risks.

Surely when it comes to cryptocurrency their is always risk because nobody is certain about anything that will happen and not even cryptocurrency alone, even in life nobody knows what will happen in the future. I will be talking about cryptocurrency trading, you must make sure you do due research and trade a reliable coin which if you are in sport trading you don't really have to make use of stop lose but some people still use stop lose for sport trading but me personally I only use stop lose for my future trading to avoid lose of all my funds. (Liquidation).

That is true but we can all agree on the fact that long term investment in bitcoin is way safer than investing in anything else, if you asked me about investing in bitcoin three or four years ago i would be hesitating and i would recommend otherwise because back than there were no regulation for it, and it seemed like government were against it, but today we are seeing not only big multi billion dollar companies invest in it, but entire countries accepting it and making it as an accepted currency, and due to its nature and limited supply the price is always going to go up so in terms of long term investment it is safe, but the other alt currencies not so much.

Thus, we can't push or encourage people to choose long-term investments as it was too difficult for doubtful people. It is very common that these people will think about what ifthe price will dump? the market will collapse? They are not totally sure about their decision but rich people can make it. That's helped me to think that talking about the long-term will also base the status of our life. Having multiple sources of income (like rich people) could make it but if you are poor or coming from a third world country that is something rare, most come and decide on a short-term investment goal as they think this could safeguard their money.

It's true that there's always a level of risk associated with investment in general. As per cryptocurrency, the high volatility makes it even more!

So as a retail investor, a trader or an asset manager, there's always an option to manage losses or gains. The stop loss and take profit button is very useful in this case.

Also,  knowledge is very important in doing anything. A knowledgeable person will definitely know how to cut loss and take more profit when compared to someone bent on making only money without the knowledge of what he's/she's doing.

In general, it is better to always invest what one can loss such that the effect will not be suicidal.

There are quite a few risks in cryptocurrency. A completely working option is to buy different coins and just wait for growth. But it is worthwhile to understand that this can also be past.

Each of these three points has a big risk as well as a big profit. Investors and asset managers have the same great risk if they have crypto assets, but the ones who are most directly at risk are crypto traders, because Bitcoin prices fluctuate.

5 Risks You Need To Know About Before Investing in...
Price volatility & manipulation. Cryptocurrencies have been on a wild ride. ...
Lack of regulations. ...
Market adoption. ...
Security, custody & consumer rights. ...
Exiting the market.

Everyone has risks, I don't see what he chooses. So all require good management and not all can do that. Fluctuations have indeed become the nature of all cryptos so don't make that a problem. I am sure traders, retail entrepreneurs and others who seek to profit by utilizing these fluctuations despite different sources. What plays a role here is the expertise of analysis, market analysis and risk compounds that must continue to be trained.

When you talk about risks that are involved in investing money in cryptocurrency, it all comes down to one thing which is loss. Anyone who is investing in cryptocurrency or trading it is likely to lose their money at anytime, it doesn’t matter whether you are an asset manager, a day trader, Or a retail investor. Whatever you are in the market,you’re going to face the risk.

Though, as an asset manager I would say that you are taking more risk, as the asset you are managing belongs to other people or should I say other investors, and losing such a huge money is going to be a huge risk for you. That’s why being an asset manager is not a job that’s meant for just anyone, you have to be someone who is really brilliant and well experienced in everything that has to do with trading and economy. If you’re not good in technical analysis or fundamental analysis, managing assets is going to be a huge challenge.

The important thing to do when you decide to invest in cryptocurrencies is to allocate your portfolio. The question is where and how much should you invest. However, there is no exact answer to this as each investor will have to decide how much money they want to allocate to their crypto investments according to their goals, capabilities, risk profile, situation, etc. personal finance.
Possible risks when investing in cryptocurrencies:
 - cryptocurrency is an emerging asset class, the liquidity of many cryptocurrencies is not high or cannot exist in the market.
 - cryptocurrencies are not regulated by any government agency or organization, however this can lead to a lot of legal risks and other consequences.
 - price volatility is one of the attractive points of BTC for speculators, but it also brings many risks.

the risk that can be obtained of the three is the crypto market which goes down and makes the market chaotic. other than that someone who invests or trades shitcoin will certainly get the losses and will get nothing so before investing into crypto we must be more careful in choosing the coins. The coin that we choose will also have an impact on the profit we can get, invest and trade the coins that do have good prospects.

It's a skill that does not belong to everyone, as you mentioned a simple trader handle his own money the risk of losing is in his hands while with asset manager, it's a compound investment that being entrusted to you, deeper experienced and really knows how to work with this business rely the fate of this investment money that you are holding.

Though it's just the same, the market is so volatile, without knowing what adjustments to take will risk your money to lose.

In the other hand, knowing the fundamentals and keep improving your knowledge are your best advantage in making your way to succeed.

Why anticipating loss already by trading or investing those type of coins? There are investors and traders that are making a lot of money from trading those.
It's that it's not ideal for us because they're not our choice. But to them, they're making a lot of money from it when they get to ride the hype at the beginning of it.

     Knowledge is basically not enough without proper wisdom. Only with having both knowledge and wisdom can one be a better doer. Just think about it, what would knowing help if you do not understand the ways to apply the knowledge you have or when you should apply it? In contrast, only understanding the ways won't do you any good without the concrete knowledge to back it up.

     Although I got your point clear as day, I just wanted to clarify that while knowledge is important, wisdom is also as important and that having both is even more important. I say this because without those two, the things that you have mentioned above will be impossible to achieve.

It is depend on how they trade and their behavior in trading, Maybe he is just too afraid to lose in which not needed in this market because the more the price is volatile is the more chances of gaining.

Exactly , we have our own batch of currencies and we have our belief in each coin, when from others it is not worth trusting well in our part that is the most promising so the thing is? for someone to profit there must be someone that needs to lose  right?

Things are not even in wisdom, but in discipline and understanding of how to apply your knowledge. Just do not need to complicate for yourself, what can be done simply. For example, we see that in the long term, bitcoin and gold are constantly growing in price and it is not difficult to guess that this is due to the constant increase in the money supply and rising inflation. Therefore, there is no problem just buying bitcoin and gold and waiting for them to grow in price.

As a retail investor, the biggest risk is that you know when to invest and for how long you can invest. If you are investing for short term, then there is a risk that prices may be down when you need to cash out.

As a trader, you should understand the different types of trading which include spot and futures trading. Your account can be completely washed out if you are not careful and do not follow the TA with money management.

The market is volatile and many people now would like to buy some bitcoin in some parts it depends on them if it's good for a long term or a short term investment. Most people hold their assets, especially bitcoin. I'm not a professional trader but I have experience since 2021 and a possible risk most of my assets is the bitcoin dominance we know the potential of the bitcoin when it dumps most of the altcoins have a higher percentage to lose or to lower the value.

cashing out is always the issue in our investment because it is easy to buy a coin and trust this but the problem is when we will be needing the currency and where we will bring this.
Have been in this situation many times before but lucky that i also have funds in banks so whenever i am badly needed? i can take out my funds in banks instead of my funds inside crypto.
That is the saddest part, if you made a wrong action and decision and suffered a complete lose , this will end up your career and you may curse bitcoin or crypto all your life.

Risk is literally can be found in all forms of investment and much more when it comes to trading. I assume that everyone is already aware of that position before entering the crypto world. That is why we need to know how Risk Management applies in real life and importantly we have to know that. And that is why we have to choose those projects that are good for investment either long-term or short-term so we don't need to worry if we miss the opportunity to sell.

Most people when they enter this market are unaware that just as they will make a lot of money in case of a big increase in any investment, they can also lose a lot of money in case of any price drop of any currency. this is something that few people think about before entering this market and what you see is the extreme greed of wanting 10X profits

That is actually the most common misconception of most newcomers in the crypto industry. Because they thought getting easy money here is that easy peasy. And then, they will find out that it is not what it seems. With thousands of alts to choose from, for sure they will be confused where to start. As some are after for get-rich-quick projects, a lot are being screwed by these scam projects, giving them bad experience in crypto. And this is where some negative feedbacks are coming from. But it is not the general character of crypto, misleading some noncrypto users.

The OP lists three kinds of people that are involved in crypto and they are: retail investor, asset manager (hedge fund business) and trader. Although I agree that trading is risky but I think the position of being an asset manager has more risk than in trading because the asset that you are managing are not yours but it was the asset of other people and if you lose it, your going to have a hard time paying it and if not, your going to face serious punishments.

This discussion wont be complete if we are not going to talk about retail investor. This type has the lowest risk among the three because you usually pick old coins as old coins works well in investing or hodling for long term.

     I acknowledge your idea but discipline and understanding falls into wisdom which is also gained through experience. That's why people often say "wisdom comes with age."


     Yes that truly is the case, but you also have to consider that not all people have good enough financial capabilities. Which is why knowledge and wisdom is needed for people less capable so they can manage their finances and have better investment plans. All throughout the years we have seen dozens of stories from a wide variety of people investing blindly; putting all eggs in one basket or even investing money that they cannot afford to lose and end up getting rekt. I hope you get my point.

For me, Cryptocurrency trading and Investments are mostly about knowledge and some level of luck. You might be right when you said, people are making money from investing in some type of cryptos, a lot of other traders have lost money from those too so it wasn't because they knew it was a better option but just took a higher Risk = Higher reward.   

Yes, of course, behind the big profits there is also a big risk. Crypto is already known to many people at high risk, but in fact crypto enthusiasts are still increasing, not decreasing. Countries are also starting to legalize some cryptos. This can be a good start. There is a risk, so we face it instead of running away from problems, this is often a challenge for traders because as traders we must be able to keep emotions well. There's nothing wrong with taking part in cryptocurrency, the important thing is that you believe and believe. It's useless if you enter cryptocurrency but just stay silent.

Not necessarily, as long as you are not trading futures market but do mostly spot trading, even if the market dips all you need do is have that patience which is also necessary for trading or investing cos there will always be a bounce-back of the market. So even when your portfolio is down and you know you have invested in the right projects just HODL.

Some people get it right and they are willing to stick with it, but there are always people who can't stand a drop in price and they panic so much to sell it. Building a good portfolio for long term investments is something that most people really hope for, but if they can't control their emotions during this volatile market then they really can't take maximum profit in the long term.

It's not really strange, but a lot of experience can usually make most people get a commensurate return on this investment. While panic and being overly concerned with fluctuations will only harm the trader on most occasions, it should absolutely be avoided in investing.

Those would really be unrealized loss and its true that as long you arent dealing with leverage or futures then you could always opt on holding and doesnt matter on how long it is and as long

you dont sell then you wouldnt loss anything but if you are dealing with other things then you wouldnt able to make out some recovery of your investment.Risk would be always there and it would
totally start up on the time that you had put up your money here on crypto space via buying those coins/project in the market.

Imagine thinking that an unstable market would lead to easy money. Thinking crypto would be a money-maker within few days is the stupidest mindset that one could ever have. Sure there are a lot of alts out there that could be taken advantage of before the dump, but with these Metaverse and some crappy NFT games experience rug pulls, it's much more dangerous to throw in your money unlike before.

those who want big profits in a short time will certainly continue to be greedy and will not be satisfied. when their portfolio already has a lot of profit they don't sell some of it, they continue to hold it until the price crashes and suffers a loss.
Psychology must be controlled so as not to harm the investment made, so that the initial strategy continues to work properly. If the target has been achieved, sell and enjoy the profits. enter and exit the market at the right time and use the money that will not be used in the future for any needs.

Everything in here has its own risk and one of the risks is the crypto market going up and down or unstable prices. for me, as a trader, the risk that can be obtained is the crypto market that goes up and down and as a trader, we must be able to choose coins that have good prospects to be purchased in a shorter period of time than investment. Besides that, monitoring the market is something that every trader must do wherewith it we can analyze the market well and can determine when to sell or buy crypto. But back again behind the existing risks, of course, there are benefits to be had too if we can use and manage it properly. so be more careful with this unpredictable crypto market.

Greed must be controlled and you should have set your own goals in the first place on what price and when you would be securing out your profits but we couldnt really blame out others on having  that kind of HODL
kind of mindset since we know that if a potential project is on your portfolio then you would continue or keep on believing on it that it would be worth on hodling for long term which some people do mind off
but majority of them are really greedy or do comes after for the high price and not actually into its true relevance or potential and thats why we do really have these kind of mistakes
that have been done.

Well, when we talk about the btc market, it is very common for us to meet people who do not have much knowledge about the speculative market, whether it is about BTC or the stock market, forex, among others, the laws are going to be almost the same, You must have a financial education to understand the market, to understand the difference between market speculation and investment, which many when they enter the market mix these two concepts and make mistakes because it leads them to failure and make bad decisions, this is where they lose money and it is not the duty to be.

The loss is suffered only when the coins are sold and not when they are being held. With bitcoin this chance of suffering a lose is less too. Again this will depend on the trader's mindset being made of nerves of steel, in which case they will accept movements as opportunities and not gains/losses.

Truely, selling and buying back must be done. But most traders fail to do at the proper time, in which case just hold, it will end up being the same.

Again this is the way the market weeds out the weak hands and only the composed diligent traders remains. Patience is important here, but being able to hold till the price reaches and then taking the chance to sell is equally important.

Greed is an emotion and it can be controlled. There are subjects who are prone to greed more than others, just like some of have a bad temper and get angry at little things, but such people need to train their minds to stay in control and not let greed take over, otherwise they need to stop trading for a while.

To be honest, such people dont last long either. They will get washed away while trying to make more and more and will be a small speck of dust in the trading timeline. Those who survive this game are the ones who are diligent and have controlled their emotions to not be greedy but be frugal.

The gambling mindset should be changed for this to happen. But there will always be some newbie willing to take the risk and become food for the whales.

I agree with you, the market tends to wash out traders that don't have the right mindset. Being controlled by emotions makes usually bad investment decisions. We can't listen to our stomach when to buy and when to sell. Greed is one of the worst emotions a trader can have, because it lets us focus mostly on returns and how to maximise them. But once we focus only on returns we tend to forget about the risks we are taking to achieve that returns. The chances of blowing becomes a big issue for too greedy people, similar to playing in casino and never stopping after a big win, until all the money is gone again. It's much easier to lose money than to earn it, that is why a good investment portfolio should focus more on the risk than on making the maximum possible returns.