Risk Management

[bad_apple]

I manage risks by knowing thoroughly the decision that I'd be taking, avoiding "quick" decisions to lessen mistakes that might get through. I always do fact-check and search the internet or other sources for legitimacy.

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[KrishaBitcoin]

Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?

The higher and faster you want to earn is the higher you will need to take the risk therefore if you want to eliminate it then you don't want to earn big earnings in the fastest way because you are afraid to face the risk so better to minimize the risk than eliminate it to do this you will just invest what you can afford to lose but you should understand that the safer an investment, the lower the chances of making high returns.

[LoupGaroux]

Risk management its very important thing in trading - its a main rule which we all need to do . Never buy all at one we need split orders and enter to market in 5-6 steps of our depo.

[Denker]

Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?

Never trade more than 1-2% of your portfolio. Furthermore you can layer in into positions. For instance when you go long you don't have to buy let's say 0,1 BTC and then hope that price moves up. Of course you did your TA before open this postion. What I mean is you .025 first. With the next candle confirmation candle you add to your position and buy another .05. And then .025 again after that and your in with your 0.1BTC position. Averaging in is also a good way to reduce risk.
Other advise: Never FOMO in. Never ever do that. Or try to revenge trade if you lost before that. If you're emotional, the chance you'll lose is big.

[edsnowangel]

Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?

Never trade more than 1-2% of your portfolio. Furthermore you can layer in into positions. For instance when you go long you don't have to buy let's say 0,1 BTC and then hope that price moves up. Of course you did your TA before open this postion. What I mean is you .025 first. With the next candle confirmation candle you add to your position and buy another .05. And then .025 again after that and your in with your 0.1BTC position. Averaging in is also a good way to reduce risk.
Other advise: Never FOMO in. Never ever do that. Or try to revenge trade if you lost before that. If you're emotional, the chance you'll lose is big.

yes you can just minimized the risk to be able to trade what you can always loose and never trade almost 50% or higher of your total portfolio

[ufaiz50]

Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?

First if you want to avoid the risk of setting a decent small profit, do not use greed or wish it could put you at great risk, really looking for reliable information and think first before acting because most investors only see a glimpse of market conditions.

[bitcoinmasterlord]

Risk management its very important thing in trading - its a main rule which we all need to do . Never buy all at one we need split orders and enter to market in 5-6 steps of our depo.

This market is very unpredictable so definitely, trading is a risky job, your profit will depend on how you will manage your portfolio when the market is fluctuating. newcomers will take panic decisions this is too risky you will lose your investment. so self-control and investing in good coins will reduce your risk in trading.

[Semaj123]

Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?

Risk can't be eliminated because if that would happen then definitely there would be no return. Because as what I understand about risk, it is simply like a return whether it can be a loss or gain. Well, it is really hard to explain when it comes to handing this risk. Those who involved in a big risk can also achieve big profit. This is why there is no specific reason when it comes to this issue.

[Wonder_woman]

Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?

Eliminating risk? Stay in fiat and accept inflation eating away on your savings. Minimizing risk? Know yourself and don't do anything stupid.

This means:

1) Understand what you're buying.

2) Don't invest into something only because it has risen.

3) Don't exit a market only because it has declined.

4) Understand what you're buying.

5) Invest only as much as you can afford to lose.

6) Prepare enter and exit strategies way in advance.


Number 1) helps preventing you from doing stupid things. If you don't understand what you're buying, you're just gambling. If you understand what you're buying, but know it's shit... you shouldn't be buying it in the first place. If you understand what you're buying and are convinced of its merits... number 2) and 3) will be less likely to affect you. Number 5) helps alleviate your psychological burden which makes it easier to not do stupid things. Such as 2) or 3) for example. Same goes for 6).


Note that hedging only helps if your hedge actually acts as one when shit hits the fan. Historical analysis may help the process, but could still fall short.

Note that diversification only works if what you are buying is worth investing in. A diversified bucket of shit, is still a bucket of shit.

Actually we have our kind of unique ways on how to trade, yes it is too risky and it's very difficult to manage. Actually when you will not gamble you can experience winning and success because losing is really part of the game.

[RAMZA]

The main thing is the right money management. Do not invest a lot of money in one coin, diversify your investment portfolio. And you reduce the risks to a minimum.

[Dudeperfect]

It is one of the crucial factors when it comes to the trading or investing. I have lost my 100% capital many times in my initial days of trading when I ignored this factor but over the time as I learned from the senior members and from my own experience, I believe that one should never invest amount more than his loss-bearing capacity even if he FEELS that he will get profit. There is no way to eliminate the risk but there are the ways through which we can reduce the risk and it mainly includes doing proper research, diversification of investment in terms of types and on the time frame and staying away from FUD/FOMO even in the worst market situation.

[veejay2716]

In every investment there's always a risk so you have to be ready for yourself on whatever happens for your money, its like a gambling that you don't know if you win or lose.

[yohaneshs]

Create a business plan before investment to minimize your risks such as losing, inflations and many more. For the example, i have $1000 to investments in crypto, actually i can losing 100% and it's my risks then to minimize it i can using 40% from my assets to investing in some area differents. I still have a risks to loss all of my assets but i can minimize the risks with the plan like that.

[tucoindb]

When we invest in a certain area where we have less capital, we have to accept that there are risks because the market is going down naturally so we have to be patient in investing even if the coin decline

[rh72]

According my experience and what I learn, there are 3 ways to manage the risk in trading. Those are cut loss, switching, and averaging. I think all of them are technique that can be used by us.

[lushlifing]

One way of minimizing risks in investing is that divide your capital to various altcoins/ICOs. for example you invested to 10 altcoins, and 2 of the altcoins dumped but you still have the 7altcoins.

[mega]

Nowadays risk management is itself a department in every organisation. Risk management refer to diversify the situation or find related alternative to minimize the losses.Risk management if well managed can improve the performance and fruitful results,Crypto world have also risk of loosing when market go down and risk of hacking,Facing these situations use powerful security tools and should invest in different coins if one side you loosing another side you will gain.

[berfanaf]

Well, you can’t avoid the risks that are involved, no matter how hard you try to avoid them there will still be times they will show up. This is a business that is very difficult and requires a serious study and deep understanding of the market before you will be able to make a difference.

When you become a professional in the business the chances are you will be able to make better profit, but there will still be some loss when you go through your portfolio or reports.

It has do with understanding the market and making accurate predictions of the next outcome which is not an easy for someone to do, the market can fall when you least expected it to.

[Md.Sufian]

Risk management refers to the risk of identifying possible risks of risk, analyzing them requires various steps to reduce the risk. For example, a fixed deposit is considered a less risky investment. On the other hand, investment in equity is considered a risky venture. While practicing risk management, equity investors and fund managers tend to diversify their portfolio so as to minimize the exposure to risk. So, to get bigger in life, you have to take risks.

[Jhomzky23]

Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?

Risk will always be there. You cannot eliminate it but minimizing it is possible with proper approach like position sizing, identifying trend, etc. Having a trading plan and respecting and following your plan can minimize your risk. Plan ahead of a trade. Plan before buying. Identify where to sell immediately if things don't go according to your bias.