5 tips to reduce your risk when trading bitcoins and altcoins

[Qartersa]

These are definitely all the answers to all ideal situations but it differs when you know the situation given us is not really as it is in real life. How easy it would be if we were given problems that are exactly the same as we have expected, hence, we just have to rely on these guidelines. The thing is, IT IS NOT AS FLAWLESSLY-CRAFTED AS YOU HAVE ENVISIONED IT WOULD BE. In fact, real-life problems are more artistic in a way that you would have to juggle your mind when deciding.

For instance when you say buy low, sell high, it is not as easy to decide on such especially when Bitcoin's price has gone down to less than $6,000 from its $20,000 peak in just a matter of three to four weeks. Of course, as an investor, you are already thinking of salvaging whatever amount is left because you would prefer to go home with a little than with nothing.

You see my point? While everything stated above is ideal, it is not always the case.

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[JC btc]

These are definitely all the answers to all ideal situations but it differs when you know the situation given us is not really as it is in real life. How easy it would be if we were given problems that are exactly the same as we have expected, hence, we just have to rely on these guidelines. The thing is, IT IS NOT AS FLAWLESSLY-CRAFTED AS YOU HAVE ENVISIONED IT WOULD BE. In fact, real-life problems are more artistic in a way that you would have to juggle your mind when deciding.

For instance when you say buy low, sell high, it is not as easy to decide on such especially when Bitcoin's price has gone down to less than $6,000 from its $20,000 peak in just a matter of three to four weeks. Of course, as an investor, you are already thinking of salvaging whatever amount is left because you would prefer to go home with a little than with nothing.

You see my point? While everything stated above is ideal, it is not always the case.

For all we know that knowledge is one of the basic trading procedures and one key to gain knowledge is to be updated in the market, by making research and lists all the coins that you want to have in your life.

It is important as well to assess if how much capital we are to take risk, if you are beginner it is important to just invest a small amount and most of all be patient and just relax.

[sofi@]

All points are actually true, a good trader is also a very discipline person I think, they know when to stop and when to control greediness. There's no point in risking all your money especially if they are intended for your daily expenses just because you think you can double its value in a short period of time, because even as much as the market is looking great today you can't be sure it would be the same tomorrow, so if you get a chance to earn today keep it, and don't put everything into the risk.

[Oilacris]

1. Have a clear target and a clear stop loss
Remember: trading doesn’t need emotions; only reason and rationality. And you just can’t ignore discipline.

2. Sometimes it’s better  to take a small percent profit per position (especially during the bear market). Yes, you will need to make more positions for significant gains, but the guarantees of the success will be much higher. The truth is that the best traders in the world aim for small and consistent profits. They know this is the only way to success.

3. Do not trade with money that you need for living expenses. This is called "risk capital" for a reason.

4. Don't be a blind bull. ALL markets are cyclical. Don't be afraid of failures or failures on the market - this is where you can earn more money.

5. Don’t go for one coin, but invest in multiple currencies. That way you’ll spread the risk. In our CryptoMaker Premium channel we post 3-6 actual signals daily – just pick any several coins you prefer and invest.  Happy trading!

1. Stop loss is always advisable to prevent further loss when price oppose on what you expect even me do always set stop loss into all of my trades.
2. Smaller profits but on constant basis will really be much better compared into big gains with higher risk type of oders.
3. Common sense is need, don't risk your life just using the last money you do have for living.
4. Hard thing since not all people do have this mentality on not easily giving up when facing difficulties.
5. Diversify is always at best.

[mai_mirai]

Very nice tips to our bitcoin trader, I agree with point number 3 don't use money that we need for living expenses and also don't borrow money to trading. Because bitcoin price unpredictable, so it's will high risk if we use that's money to trading.

[orarider]

1. Sell bitcoin as it raises prices.
2. Do not use cash when trading bitcoin and altcoins.
3. keep bitcoin and altcoins at a low price.
4. Do not keep many bitcoin and altcoins.
5. Decrease investment in bitcoin and altcoins when price increases are too high.

[H0USE]

If you want to reduce your risk while trading in this such a volatile market then you must follow some basic procedure and security means like:
1:)Don't invest too much in any coin,invest that much you afford to loose
2:)Invest in the coin you have completed knowledge and have some good trading strategies
3:)Sell at higher prices and buy at the dips
4:)Always diversify your portfolio instead of investing in one coin
5:)Don't do panic selling and get eroded by negativity.

[Svelto]

1. Have a clear target and a clear stop loss
Remember: trading doesn’t need emotions; only reason and rationality. And you just can’t ignore discipline.

2. Sometimes it’s better  to take a small percent profit per position (especially during the bear market). Yes, you will need to make more positions for significant gains, but the guarantees of the success will be much higher. The truth is that the best traders in the world aim for small and consistent profits. They know this is the only way to success.

3. Do not trade with money that you need for living expenses. This is called "risk capital" for a reason.

4. Don't be a blind bull. ALL markets are cyclical. Don't be afraid of failures or failures on the market - this is where you can earn more money.

5. Don’t go for one coin, but invest in multiple currencies. That way you’ll spread the risk. In our CryptoMaker Premium channel we post 3-6 actual signals daily – just pick any several coins you prefer and invest.  Happy trading!

Good advice you have listed. However, I would like to add on to your points. Always stay informed about the market situation and have an emergency plan in placed to deal with market changes.

[bitgolden]

Thanks for sharing something which has been asked and discussed million times already.

5. Don’t go for one coin, but invest in multiple currencies. That way you’ll spread the risk. In our CryptoMaker Premium channel we post 3-6 actual signals daily – just pick any several coins you prefer and invest.  Happy trading!

It is wise to spread funds but it doesn't necessary mean that you will lower your risk. Sometimes investing in only one coin is less risky then investing in 10. I am not sure what investment has to do with trading, they are two different things, at least I see investment as something for long term and trading for short.

You’re right. It doesn’t stop the risk you take, but just limit the chances of the risks. But the tips are quite helpful and I believe if anyone follows them it will improve their chances in trading for good. And I like that number 3 tip, what was mentioned there is exactly what some people do.

They just don’t trade with money they need for living expenses, they also borrow money and invest into trade, which to me is total madness, cause you don’t know what will happen to the money if you invest it in trading, you may even end up losing the borrowed money and putting yourself in big problem. It will be much better to invest a borrowed money into a reliable project that will make it grow and not trade with it.

[haroldtee]

2. Sometimes it’s better  to take a small percent profit per position (especially during the bear market). Yes, you will need to make more positions for significant gains, but the guarantees of the success will be much higher. The truth is that the best traders in the world aim for small and consistent profits. They know this is the only way to success.

I must say this is my best point from all the ones you mentioned. So many people have fallen victim of this and I used to before in a bear market, so I am not exempting myself, but experience over time, thought me some good lessons. Rather than looking for a big win at times like this, target those small ones which can always give you a good assurance of hitting a sell target. You had be surprise that while you are waiting for the big one, you would have hit smaller ones several times on different markets easily, unless you are a long term trader anyway, which all still balls down to market trend.

At the end, it is always good to find a different strategy for every trend in the market and find a way to adjust to it whenever it is warranted. Always good to have a safe target, and always the best when you keep your stop loss in place. Great one btc100!

[inskraer]

1) The main thing is not to be greedy and fix your profits. 2) To be ready to lose money

[zhangxie29152784]

1. Have a clear target and a clear stop loss
Remember: trading doesn’t need emotions; only reason and rationality. And you just can’t ignore discipline.

2. Sometimes it’s better  to take a small percent profit per position (especially during the bear market). Yes, you will need to make more positions for significant gains, but the guarantees of the success will be much higher. The truth is that the best traders in the world aim for small and consistent profits. They know this is the only way to success.

3. Do not trade with money that you need for living expenses. This is called "risk capital" for a reason.

4. Don't be a blind bull. ALL markets are cyclical. Don't be afraid of failures or failures on the market - this is where you can earn more money.

5. Don’t go for one coin, but invest in multiple currencies. That way you’ll spread the risk. In our CryptoMaker Premium channel we post 3-6 actual signals daily – just pick any several coins you prefer and invest.  Happy trading!

These are great tips, many investors know, but rarely execute.

Article 5 I feel very good, put the eggs in several baskets.

[prtty2gal2]

1. Have a clear target and a clear stop loss
Remember: trading doesn’t need emotions; only reason and rationality. And you just can’t ignore discipline.

2. Sometimes it’s better  to take a small percent profit per position (especially during the bear market). Yes, you will need to make more positions for significant gains, but the guarantees of the success will be much higher. The truth is that the best traders in the world aim for small and consistent profits. They know this is the only way to success.

3. Do not trade with money that you need for living expenses. This is called "risk capital" for a reason.

4. Don't be a blind bull. ALL markets are cyclical. Don't be afraid of failures or failures on the market - this is where you can earn more money.

5. Don’t go for one coin, but invest in multiple currencies. That way you’ll spread the risk. In our CryptoMaker Premium channel we post 3-6 actual signals daily – just pick any several coins you prefer and invest.  Happy trading!

Those are very nice points and can easily help anyone who cares to listen or read to avoid making some terrible mistakes when trading and so many people really do not know that sometimes, the simple things we overlook a lot in trading are some of the things that can earn us those good profits, but of course, we forget that and we get carried away looking for the big wins while some people are earning a lot with the small ones.

[zeaderza]

1. Have a clear target and a clear stop loss
Remember: trading doesn’t need emotions; only reason and rationality. And you just can’t ignore discipline.

2. Sometimes it’s better  to take a small percent profit per position (especially during the bear market). Yes, you will need to make more positions for significant gains, but the guarantees of the success will be much higher. The truth is that the best traders in the world aim for small and consistent profits. They know this is the only way to success.

3. Do not trade with money that you need for living expenses. This is called "risk capital" for a reason.

4. Don't be a blind bull. ALL markets are cyclical. Don't be afraid of failures or failures on the market - this is where you can earn more money.

5. Don’t go for one coin, but invest in multiple currencies. That way you’ll spread the risk. In our CryptoMaker Premium channel we post 3-6 actual signals daily – just pick any several coins you prefer and invest.  Happy trading!

Most of the advice is solid but I disagree with the fifth point specializing in a few markets or even in one is better, there are many nuisances in the markets that can make the price to go in one direction or the other and the more you trade in a market the more you know it, so trying to trade too many coins is a mistake in my opinion especially when the profits you can get with bitcoin trading are already some of the biggest profits you can get in almost any market.

I would not fully disagree with the last point in a way. Normally, except I am just extra sure of a market, I do not go more than 2% of what I have as my capital as that helps me to spread a lot of risk and then know that even if I stop loss, it would not be affecting my total asset much compared to the profit I will end up having if I end up hitting my sell target. However, based on the way he said it and based on what you have said, I slightly agree with you on just trading so many coins can have some effect trying to monitor them all at once.

[expless]

While these are great tips sadly they are not performed by many participants in the market. I just found out that somebody I know had most of their net worth in XRB on Bitgrail and that got hacked a couple weeks back. Truly sucks but you gotta protect yourself in these crazy markets.

Normally, you would not expect everyone to do exactly that and which is the reason we end up having a lot of people in the market who are always busy trading without strategies because they thought they can do it without having some knowledge on trading. It is not about reading charts, or making use of TA or indicators to make decisions; it is to know some basic things like what the OP has mentioned to trade effectively and safely.

[bitcoinrays]

I really like point 3, I often read the thread where he bet his property and in the end he lost and became stress, it's very bad and feel sorry and I can only give him the spirit.

Yeah, it makes a lot of sense and I have really seen people who have done that before and then they ended up messing it all up. Some even go to the extent of seeking out for loans to trade. Sure, for a good trader the seeking out for loan is not bad if you know what you are doing and you can assure yourself of getting good profit, but for someone who really does not have a good idea, that would be a bad one.

[Clark05]

This thread is very helpful to us and for sure newbie that who wants to start trade can apply this when it's start trading.  Not only for newbie but also for the expert or successful trader that's want to add this information or knowledge.  Thank you brcause you create this thread for us.  But the number 1 tips for me to reduce risk is to making a research to prevent losing money because if you do that you can choose a right coin.

[coolws]

First, thank you for your tips. From my point of view, just collect news or related information as much as you can, alts often get influenced quickly according to the News. then keep the basic method: buy low and sell high as possible as you can. Last not also important, do not borrow money for trading.

[baconlike]

Thank you very much for the 5 tips you have put out, but if there are specific examples for each tip would be better. I am new to the crypto market. So many words I have not really understood. But I like the most is your fifth opinion, we should not put all the eggs in the same basket. Distributing them will reduce the risk in business.

[Anatole Thompson]

I want introduce you one tip. Trading volumes of cryptoassets are exploding. More Bitcoin is traded daily than Apple or Amazon stocks. How to leverage this phenomenon into trading profit? Binance Exchange is a new global exchange that has quickly entered the top 10 exchanges by trading volume, and rising. They issue their own utility coin.