How to manage the risk in investing cryptocurrency?

[netil]

There is no guaranteed way to manage risks. Even in the stock market, which is considered more "civilized" than the crypto market, no one can predict anything. It remains only not to make rash decisions based on emotions.

[Chrisjay29]

For me i invest currency that has more population and most common crypto currency like bitcoin and ethereum. And in comes of investing ico i also want to see how they fast reach the softcap. And there population i also want to see.

[DiabolicAnt]

As for me there's no easy way to do that because even the most experienced traders still are not protected from such things.

[Ishiro5]

A golden rule here is also not to invest what one cannot afford to lose without it affecting one's lifestyle. This rule is however mostly ignored and people get their fingers not just burnt but completely cut off.

[dharnamonitor]

There is no guaranteed way to manage risks. Even in the stock market, which is considered more "civilized" than the crypto market, no one can predict anything. It remains only not to make rash decisions based on emotions.

Indeed, in trading diversifying is one of the method used to lessen the losses if ever there's one that actually lose its value. But for me accepting that you'll actually lose all of your investment would be a great since it's trading like what you've said, "no one can predict anything", it's a gamble after all.

[KennyR]

Each and every investment has got its own risk. Whether it is a cryptocurrency related or commodity based or forex related. While making an investment we agree to the terms where the risk factors were clearly mentioned. From my understanding better is to take risk with cryptocurrency rather than taking risk with common investment schemes.

[MondayTraddd]

I don't know much about it because I am novice in the line

[bizarro]

Try to consider for yourself, what is your goal here at crypto. If you just want to earn, so the risk would not be high, as if you want to trade with big funds.

[Bessta]

For me, Monitoring, right timing, patience, doing researches, strat planning are important  things to do to minimize risks in investing on cryptocurrencies. Crytocurrencies are so volatile that you need to be as alert as possible or else you'll lose your investments.unless you haven't learned the techniques you should invest on top cryptos first then little by little you'll know how to diversify on alts or icos which are less risky which you will also know by doing somd researches.

[teeevnglst]

Try to manage it by diversifying your portfolio on that way you can lessen the risk of your investment and in the same time it could also turn to a good investment when diversified greatly.

[bitgolden]

actually nowadays to be able to do management in investment is easy. much or little risk we can get. as with invest in ethereum which is in terms of risk quite a bit in my opinion than on the other coin

We all know this thing that there is lot of risk involved in the crypto investment but the fact is along with this probability of the risk, there is also a huge amount of earning as well and that to do so, you need to go for managing the risk in a way so that it might not affect your earning. You need to gather more information and knowledge regarding the things and that you need to think well before taking any step.

[VentureHero]

For the new projects the only way to limit the risks is to study a lot. Make researches before investing in any ICO or early-stage project.

If you are talking about "how to limit the risk of investing in bitcoins", be aware that it's already a super risky form of investment.

[Trimegistus]

The best way to manage risk in crypto is by by choosing your investments wisely.

These are my criteria:

- Premined or not?

Premined coins are too suspicious. The devs take an initial big slice for themselves always justifying that with some philosophical rhetoric but there are many past examples of total scam coins using this scheme. 

- ICO or no ICO?

I don't like ICOs, I prefer to invest in an already ongoing project with given proof of stability and endurance. I'm not saying all ICOs are scams, but same of them are for sure!

- How old is the coin?

In my book, if a coin is still being actively traded after 3/4 years of existence, this has to mean something; there is a faithful community behind it.

- Is it still being actively developed?

Following the previous point, if after 3/4 years the coin still has a dev team committed to it with real plans for the future, then it has a real project!

- Does it have any real use besides pure pump and dump speculation?

Is the coin being used for any kind of purchases? If not, are there any plans for it? Otherwise, it will only be a play toy for trading.

- Does it have an active and large community?

How large is the community? Is it still active or everybody left a long time ago?

- Is it PoW of PoS?

Proof of Work is a dead end, the power consumption is obscene. Not viable for the average domestic crypto enthusiast. Proof of Stake can be done with a Rasberry Pi

- Fully functioning wallet?

Some coins have terrible wallets, unstable, not user friendly. This is a key factor, the software has to be in line with the state of the art crypto developments.

- What is the current marketcap?

A coin already above 100mil might not be the best bet if you can find a good one below 100 mil with a good growth perspective.

- What is the current/total coin supply?

Scarcity might prove to be an added value in the long run if you are planning to hold a coin and leave it for your kids!

[jatin729]

Investing in crypto currency is more risky than investment in normal products like mutual funds, stock market.
Well question is how we can manage risk? for managing the risk in crypto currency investment do research first. we have coinmarketcap website where you can compare all tokens and coins . from this data you can generate your own prediction according to total supply of the asset.
To managing the risk you also can do one thing which we all are doing tho. HODL.

[zngit]

I also believed that risk can be manage, however sometimes it couldn't. We cannot control the weather, we cannot control the time when it to stop and go. Time is gold. Investing in crypto is risky, however there is a solution to that problem be a risk taker. Being in that mode it means you are fully convinced that possible you lose but more on win.

[spongegar]

The best way to manage risk in crypto is by by choosing your investments wisely.

These are my criteria:

- Premined or not?

Premined coins are too suspicious. The devs take an initial big slice for themselves always justifying that with some philosophical rhetoric but there are many past examples of total scam coins using this scheme.  

- ICO or no ICO?

I don't like ICOs, I prefer to invest in an already ongoing project with given proof of stability and endurance. I'm not saying all ICOs are scams, but same of them are for sure!

- How old is the coin?

In my book, if a coin is still being actively traded after 3/4 years of existence, this has to mean something; there is a faithful community behind it.

- Is it still being actively developed?

Following the previous point, if after 3/4 years the coin still has a dev team committed to it with real plans for the future, then it has a real project!

- Does it have any real use besides pure pump and dump speculation?

Is the coin being used for any kind of purchases? If not, are there any plans for it? Otherwise, it will only be a play toy for trading.

- Does it have an active and large community?

How large is the community? Is it still active or everybody left a long time ago?

- Is it PoW of PoS?

Proof of Work is a dead end, the power consumption is obscene. Not viable for the average domestic crypto enthusiast. Proof of Stake can be done with a Rasberry Pi

- Fully functioning wallet?

Some coins have terrible wallets, unstable, not user friendly. This is a key factor, the software has to be in line with the state of the art crypto developments.

- What is the current marketcap?

A coin already above 100mil might not be the best bet if you can find a good one below 100 mil with a good growth perspective.

- What is the current/total coin supply?

Scarcity might prove to be an added value in the long run if you are planning to hold a coin and leave it for your kids!

take note kids! this is how things are done! you got to remember that investing always carries risks. that is why you should invest money you are willing to lose. be it a dollar or ten, so long as you're ok with it flushing down the drain then you're good. i know it is scary to risk your hard earned money, but the cure to fear is knowledge. research, learn and adapt. read forums, study trends and take into heart this post. then you will be a smart investor.

[BlueStackz]

I think you should quit btcs then it would beriskless LOL

It is very important to manage the risk while investing in any business including crypto currency. Risk is related with business with out it some one can not be a successful businessman but there are conditions for it while doing business and investing in crypto currency make sure that your opponent is authentic and do not believe on others if they demands to send them money and they will send it back with triple profit. More research is needed for a good business. So you should do more research and you will become clever to manage with risk.

[kimochidesh]

The best way to manage the risks involved in investing cryptocurrencies is to diversify your investments. There are so many good crypto coins out there to earn profits from. So the aim should be to diversify your funds rather than investing all your idle funds in one coin. Then also you should not invest more than you financial capacity or in simple terms don’t invest more than what you cannot afford to lose.

[PM.coins]

Whatever your business you get involved, you must be ready to face risk. To be successful, you must be able to manage or control your risk. The following simple strategy you can take to manage the risk in cryptocurrency investment. Prepare your capital and divide or share it into several portions. Probably 50 % of it you invest in bitcoin, 30 % more you can invest in eth and the rest 20 % invested in ripple. This strategy is used to diversify your risk. Another way is investing in one coin, say in bitcoin but in different price levels when price drops using those portion stated above.

[jakoylantern]

For me, you can manage the risk of investing in cryptocurrency by knowing that things that you will invest at and gain some knowledge, skill and create some plans that you will do. Yes, in investing in cryptocurrency is risky but in all kind of business or investment theirs a risk if you will profit or lose all your money and hard works. In investing into cryptocurrency make sure that you already do your research, and you have the money that you can afford to lose because even we studied that that particular crypto we are not sure if that crypto will become successful or not. Experience is the best way to know how you can manage the risk level of that crypto because if you lose or money you know that did your best but that crypto is profitable, but if you profit or gain plenty of money I’m sure that you are hungry for more.