How to manage the risk in investing cryptocurrency?

[thend1949]

The best way to manage the risk of investing in the crypto market is avoiding excessive investment. One should never invest more than his loss-bearing capacity as we all know that crypto market is a highly volatile market and one can lose his entire capital (I have lost my entire capital in my initial days of trading) with even a single mistake so one should always consider his risk profile before investing in crypto.

Risk reduction should always be a priority as risks are always part in the field of trading. Wise attitude is an important factor to consider in dealing the risk in investment. Trade with low percentages, meaning a single loss is never too destructive respecting to total assets. Another risk management strategy, it is important to accept and understand the fact that losses are part of the game. Don’t fear losses. The only thing is to have a goal to win more than you lose.

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[Hotel_Prodeo]

Making plans and targets is the most important thing for us to do when investing in cryptocurrency, as we know that the price of cryptocurrency is like a roller coaster so if we do not keep up with the latest developments it will make us lose money.

[YED]

If you invest in crypto you have to accept the risk . Risk is ever present in the crypto market, and it is highly volatile. Hard regulation, government intervention, hacks, etc. happen and inevitably hurt the price ..diversification is the best way to manage the risk. Do not invest your entire nest egg in digital currency. Divest into stocks, gold, real estate, forex, etc.

[bncbnc]

Making plans and targets is the most important thing for us to do when investing in cryptocurrency, as we know that the price of cryptocurrency is like a roller coaster so if we do not keep up with the latest developments it will make us lose money.

To manage your risk you need to have a good strategy and planning for your bitcoin investment. although it is difficult to predict that either the price will increase or decrease but at least it can protect us and limited us to a point which can protect us from a big lost.

[ivrynx]

Since volatility is high in cryptocurrency, I suggest to study first the coins you want to invest on, read the charts, especially the historical, since it always repeats itself at some point, then diversify, do not choose just one coin to invest on, if you only have bitcoin, try looking for other coins that has a huge room for profit, since they can give you more income than you thought. Keep in mind as well that there are scam coins out there, do not invest on those coins, make sure the devs are active, they are always updating and that you can reach out to them, make sure that the roadmap is being followed. Lastly, do not believe on FUDs immediately, always do your research and make sure you understand what is really happening, educating yourself is still the best way to minimize risk.

[tianok21]

The risk in the virtual currency market is the risk of losing some or all of its capital when the investor performs the investment or virtual currency transaction. Identify the risks before conducting a transaction, helping them to know the specific loss rate in each case of investment will be how to, minimum and maximum how to decide the scale of investment, the first time investment, time of investment completion, and other relevant factors.

Once you engage in any investment, risk is part of the whole picture.  This is because there are always to possible outcome: either winning profit or losing money.  The only things investor must do is to lessen the risk of losing money through the following steps:
1. Be sure you study the crypto market and you made a research and analyze the movement in the market of the coins/cryptocurrency you want to invest. Having proper and enough knowledge is must.
2. Do not put all your investement in a single basket.  You have to divide your investment.
3.  You fully understand the concept/purpose of the coins you are investing.
4.  You have a specific goal and strategy to reach your target earnings.
5.  Do not invest too much.  Only invest money you can afford to lose.

[maculeth]

when the price just increased, don't buy a lot. because it still risks down again. precisely when the price is falling, we can buy more quantities.

[dewi91]

You should take the risk to get a lot of profit, do not buy when the price goes up to reduce losses. Do not panic when the price go down more than when the price you are buy, hold it until the price increase. You are do not feel doubt if you want to invest in crypto, choose coin that have a good performance and wait until that coin reach your target

[misterj]

Based on the books that I have read which are related to finance. I came up with the knowledge that instead of investing all of your money in only one place, spread it instead. By doing so, you are increasing your money survival. It might not end well to the others but surely others will do good and only small possibilities that all places fail.

[lingwistiko]

You should have to be firm and crisp on your decision making. If you are going to invest, then you must have known before how bitcoin can fall so bad. So basically, you should be a risk taker and knows how to hodl things up when in crisis.

[Sakash]

You do not have to do any business where you have to invest there. Because without business, there is never a business. Before investing, you should definitely have the risk of investing.

[Jlv]

Before buying any coins, do deep research before making any investment, risk is always there so we should protect our money.

[isetter]

Can not manage the risk in electronic money. Bitcoin and Crypto all contain 50% of the risk. It can disappear at any time. or exchange can scam. There are many reasons. We will not be able to manage the risk

[GrayFullbuster]

The risk in the virtual currency market is the risk of losing some or all of its capital when the investor performs the investment or virtual currency transaction. Identify the risks before conducting a transaction, helping them to know the specific loss rate in each case of investment will be how to, minimum and maximum how to decide the scale of investment, the first time investment, time of investment completion, and other relevant factors.

You should be brave for you to take the risks for you to make profit. There are a lot of risky investment that you can do in order to make money. Your courage and your bravery will help you to overcome your fear of making investment.

[minnerETN]

The most effective way to lower your risk is to do more research.

right. Need to learn more about Crypto to invest properly. There are a lot of newbie who know about Crypto and they have invested too much money without knowing the information about the projects they are investing.

[Cinemo]

While investing everything on a proven winner is the quickest way to bring a high return on an investment, it is also the riskiest. With a diversified portfolio, the downturn of one altcoin matters less. By spreading investment capital over a wider field-of-play, an investor is maximizing the odds of receiving a positive return on investment.

We all know that investing in cryptocurrencies are so risky so i reffer to read a lot of informations before i invest with something. Many of us experience that their where scam. So i am careful in terms of money cause i dont want to be a broke someday. I want become rich. Good luck for all of us

[thetruth123123]

Maybe try just to invest in different coins and not in one particular. Maybe try to read and overread all the details of a project before investing in it.

[dynospytan]

The risk in the virtual currency market is the risk of losing some or all of its capital when the investor performs the investment or virtual currency transaction. Identify the risks before conducting a transaction, helping them to know the specific loss rate in each case of investment will be how to, minimum and maximum how to decide the scale of investment, the first time investment, time of investment completion, and other relevant factors.

For me, to manage the risk in investing cryptocurrencies is like how you take a risk in business. Because when you invest to business there are no 100% chance of being a successful without losing an capital or money. Managing risk is just a guide on how you will lessen your loss.  My advice, as how i manage the risk in investing, i usually check the validity of where i will invest. Also, i make sure that when i invest this investment will not be going to be a scam. So that's why i don't have any problems in investing so far. But, it may be different to other people's experience in investing..

[torch2121]

Risk is always present in every investment and evokes negatives images. Its like placing bets on a long shot or traveling alone to unfamiliar places. We may think about losing our life's savings. Risk comes in many forms and this will affect our financial goals. We need to find the key to dealing with investment risk and learn how to manage it. We need to define the probability of an actual return on our investment, they are things that we need to look at like market, interest, inflation, credit and etc. These are the things that we need to look at and need to consider before entering in a certain investment.

[d0flaming0]

While investing everything on a proven winner is the quickest way to bring a high return on an investment, it is also the riskiest. With a diversified portfolio, the downturn of one altcoin matters less. By spreading investment capital over a wider field-of-play, an investor is maximizing the odds of receiving a positive return on investment.

We all know that investing in cryptocurrencies are so risky so i reffer to read a lot of informations before i invest with something. Many of us experience that their where scam. So i am careful in terms of money cause i dont want to be a broke someday. I want become rich. Good luck for all of us

well in my opinion it is good to hear that you wanted something in life for  the future, but in reality, you cannot deny or avoid failure, and honestly no matter how much you have prepared for your victory there are times that you are back against the wall, but that's reality. failure is a part of success, that is why in investing no matter how knowledgeable you are you cannot still know what's right ahead of you, that is also why we carefully examine what we are going to invest and then study, in short we also rely on information we gather as knowledge.

i agree, although some good businessmen will tell us to not keep our eggs in one basket. its a good plan to diversify your folio not only for higher return but also for less risk if possible.