Risk Management

[Allura74]

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.

Risk management is very important for every individual who have to venture on trading and investment because we all know that here in crypto world all is unpredictable and we all dependent on speculations based on project road map but in reality still the destiny of the coin will always rely on people if they have to patronize such platform, so market movement and changes is depend on the people.

[Bobby park]

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.

Even we follow this procedures, we cannot say that our investment will 100% successful rather it will just lessen the risk of the people who want to enter the world of cryptocurrency. I believe that we need to risk always to gain profits, we should just have risk management in order for us not to lose. Our capital is just limited and we need to give importance whatever we will do with our money.

[jrrsparkles]

If something called as investment then it also comes with risks,the one who knows how to tackle all the risks will get more benefits.The only way to minimize the risk is by selecting the best coin to invest and the investment capital must be affordable for you to lose.

[farwellbit]

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.

Uuhm… I think you’re very right, though I’m not very sure of that, but it do works. Why I said I’m not very sure of that is because altcoins do fall whenever the price of Bitcoin is falling. So I might have to say that investing only on Bitcoin is the same as investing in several altcoins. Cause whenever the price of Bitcoin (BTC) is going down, they follow it down the path, and whenever the price of BTC goes up they will also follow it up (though not all of them) I believe the best thing is to monitor the price as often as you can to be able to stop your loss. When I mean monitor the price often, I don’t mean a steady gaze on the price to know when you’re losing or winning, you can simply set a price notification.

[entrepmind23]

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.

This is the mistake of most people trading because they do not have a trading plan. Whenever they see a coin that is increasing then they will just jump in and buy immediately because it is hype and then when they were dumped on, they would whine because they lose a lot and they have no choice but to hold the coin or sell at a loss. The biggest mistake is that they go all in in one trade because they wanted to have bigger profit but more of often than not, the opposite happen and they have bigger losses.

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.

This is one way of minimizing risk because you invested in various coins but in a bear market, it is possible that all the coins will be at a loss so even if you invested in one or ten coins, you still lose some value of your investment. If you wanted to manage risk then at least have an acceptable amount that you are willing to take as loss and then sell your coin. You can trade again and get back on track. It is better to lose 10% than 50% because you are still hoping for the value to go up.

[squatz1]

There are no big ways to deal with risks when it comes to crypto, once you're here it's like trading penny stocks. All of your money could be gone in a matter of seconds (this is also possible with other securities, but the risk of it happening in crypto is much higher)

You can't really diversify in crypto, it's not really possible -- as all coins go down when the market starts to shift. THis could stray with a couple coins, but it doesn't work NORMALLY.

[kloinko1n]

The most basic rules for minimizing the risks in investments are their diversification, and do not invest all the money

[Pilotone]

To manage the risks you need to have a trading plan, do not put eggs in one basket, have the knowledge of technical analysis. And most importantly, do not invest the amount at loss of which your financial position will be shaken!

[jenktosar]

To manage the risks you need to have a trading plan, do not put eggs in one basket, have the knowledge of technical analysis. And most importantly, do not invest the amount at loss of which your financial position will be shaken!

I agree. also in the exchange trade, you must constantly use stop-loss. This is often forgotten by beginners. and do not invest in all shitcoins

[jonathancool220]

all in terms of investment it is no risky.

we take his example of building a hospital, the hospital had a purpose to care for people skait.

the risks of the hospital are:
- What if it's not a patient?
- How if his medical equipment is lacking?
- how does employee pay?

it's all a risk is not it?
same thing with Cyrpto.

[KesoNie]

To manage the risks you need to have a trading plan, do not put eggs in one basket, have the knowledge of technical analysis. And most importantly, do not invest the amount at loss of which your financial position will be shaken!

We should have to make our own strategic plan in able to satisfy our goals. We should have to bare in mind that we have to be wisely in every decision especially when we have to go through an investment which it is a mandatory call to not putting all our eggs in one basket. And if we'd going to invest in one coin we should study it first and check it's background.

[ArIMy11]

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?

If I am not sure with the things I am going to do or with the decisions I am going to make especially if I know that it is risky, I consult other people. People I know that are properly educated with the things I am dealing with. If I am not really sure with things I am entering and others cannot give me a right advice, I always go to safe. Like example in trading 50% sale 50% hold after receiving tokens from bounty

[LogitechMouse]

One is by diversifying your portfolio. You need to put your money into different coins so that if Coin A became a shitcoin, there is Coin B and Coin C that you have and you can profit from that coins.

Second is by doing some research. By doing research especially if you are an investor, you will reduce the risk you have because you know already where to put your money into.

Third is useful in trading. Risk - Reward Ratio. Use this in order for you to become a successful trade. What is this??? Use google to search .

[BLAST2MARS]

The best risk management is to never sell. No matter how long it takes, crypto always recover except if it got delisted. So choose your altcoins very carefully because even it does not reach your expectation, be sure that you can still recover your investments from it.

[cedrixperez]

Good analyzation is taking you away from risk we should be aware of our coin movements in market maybe we should keep the coin until the coin give us profit. Panic selling is the worst thing we could do cause there will be a probability that coins will make us regret in the end and also dont let emotions controls your trading strategies.

[dekcutbusu33]

Yes you only trade with disposable income and have a strong belief to have zero debt. No mortgage, no credit line, even your credit card pretty much just sitting there that is not used unless it's to buy a plane ticket or pay a hotel so it earns mileage points.Diversified and average cost of dollars. Buy a fixed dollar amount on a regular schedule. Once Thursday, every two Thursdays and others. And do not look at the price every day, someone can go crazy doing this.

[Sakash]

One of the key features of business-business risk management is risk management. Risk control is needed. Where there is less risk, there is one way to make money by investing. There is a business in the business, put all the eggs in different containers without putting them in one container.This will scatter your risk differently. This can be a lot of risk management.

[logicgate]

Good analyzation is taking you away from risk we should be aware of our coin movements in market maybe we should keep the coin until the coin give us profit. Panic selling is the worst thing we could do cause there will be a probability that coins will make us regret in the end and also dont let emotions controls your trading strategies.

  Look dude, you would never be leaving behind the risk factor. It never leaves you anywhere so just try to cope up with this along the way. Whenever you are interested in some earning thing and especially when it is just a source of income and there are profits and losses as well. So don’t just be foolish to afraid of this risk. It never harm you if you better know how to take it the path.

[carlfebz2]

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?

This thing do matter most on a certain individual control when it comes to risk management.There are lots of things that can be done but it would end up into your own knowledge and discipline on the things you are engage into specially when we do talk about investments here on crypto which the risk would always been the volatility which management would really be needed up for you to sustain and to lessen the risk of losing money. Number one thing that can help you out is your experience and knowledge,if you are fully aware on how crypto prices do moves you can able to make your own idea to trade.

[harbin55]

Risk is really the big problem that the investors faces nowadays,
if you can  manage all the risk that can occurs therefore it help you that you can avoid the possible losses which may arise soon.