How to manage the risk in investing cryptocurrency?

[PhucS]

All types of investments are risky, which is unavoidable even if the project is highly secure, especially in the current cryptocurrency market. To manage risk, I think we need to study the market carefully, learn how it works, the potential development of the project is appropriate or not, and consult with people. However, I think this is a difficult issue, not everyone knows how to manage the risk, especially the newbie, even some people with many experience is difficult to do this.

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[stepwilli]

You may find yourself investing in a cryptocurrency, having it increase in value several times over, only to realise that you can’t really sell it. If you try to sell large amounts at once, you’ll crash the price. Why? Because there is no liquidity. If a coin has no trading volume, significant price swings are bound to happen.You can play it safe and avoid low volume coins all together but if you don’t want to, the least you can do is to know the risk you’re taking. CryptoCompare has a portfolio tool that allows you to analyse several risk factors in your portfolio, including volatility, exposure and, of course, liquidity. Their tool allows you to get an estimate of how long it would take to sell a certain coin based on the current volume.

We can not say that it is risky because if we look at the other investments and business all have risks if we do not handle correctly. Handling of business is important if you know how to handle the process then you will reach to your profit. On the other hand if you do not know how to handle then risk is always around. In order to manage risk you need to know how to handle.

[yndye]

All types of investments are risky, which is unavoidable even if the project is highly secure, especially in the current cryptocurrency market. To manage risk, I think we need to study the market carefully, learn how it works, the potential development of the project is appropriate or not, and consult with people. However, I think this is a difficult issue, not everyone knows how to manage the risk, especially the newbie, even some people with many experience is difficult to do this.

Always have a plan when investing. Choose a coin that has good fundamentals and take profit whenever possible so that when what is left is pure profit then your emotions will be intact because you are confident that whatever the price will be, you already have profits unlike when you leave all your capital and just let it be, there is a possibility still of a loss instead of profits. Diversification of investment is also ideal because one coin may be at loss and one may be in profit so at least you are in break-even.

[cluit]

my opinion manage the risk in investing cryptocurrency is do a lot of research and always connect with peoples know the latest rates.do not do not easily believe in the news is not clear the truth

That is called the crypto currency evaluation. One has to be able to evaluate the crypto currencies in the crypto market for the future profit and market popularity or market capitalization. This is something that shows how many people actually have been involved in the currency and how much profit do you expect to get in the end.

Of course you are here for money. Better evaluate the factors that affect the future return like risk, liquidity, market cap etc. This will lead you to earn good in the end.

[MMA]

my opinion manage the risk in investing cryptocurrency is do a lot of research and always connect with peoples know the latest rates.do not do not easily believe in the news is not clear the truth

Risk is always there in trading and in investment, either you are a day trader or a long term investor, either you are a trader in real life or a crypto trader, you have to accept the fact that you can lose your money in trading. But if you will manage everything in a good way, you can at least reduce the risk of losing a lot of money.

[supergorg27]

To manage the risk in investing crypto is before you invest in anything or something try to have more research and knowledge about the project.

[DrGuns4Hands]

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.

In investing this kind of industry, one must have prior technical knowledge about cryptocurrency. Why is it needed? Well if you think about it, in every investment platforms, even stock market, foreign exchange, or real estate no dumb will go into it, invest without studying it. Even some of those experts in their different fields do some everyday research, how much more of those beginners. So because of the volatility of cryptocurrency, one must have knowledge, because with it, risks can easily manage because of what you acquired or what you have. Education is always the key.

[petronus]

Before I invested in cryptocurrency the first thing I see how big is the coin holder. it is a person's excrement with the coin technology. example of eth and bitcoin with the largest volume current.

[DiabolicAnt]

Think before you invest. Do your research into projects, think about what you gonna do if it fails, and what can you do to prevent losing all your capital. And of course don’t invest everything in one project.

[Sakash]

Investments and other risks exist. Investing your knowledge section will have to manage the meaning correctly. In that case, the risk will be increased in that case.

[King money]

Investing must have risks.
And the size of the risk depends on the investor in managing the investment.
For example, investors are less skilled in managing their investment then the risk of losses must be greater.
Unlike the case of investors who are very good at investing in potentially advanced projects, this will be the much more minimal risk.
The real risk can be minimized, so big and small the risk depends on Cryptocurrency investors.

I think investing in the risk of cryptocurrency is sometimes higher than other investments but if you understand to manage with the investment of cryptocurrency, your profits are also much higher than what you expect due to very fast price volatility to rise and fall. this time is the right time to invest in cryptocurrency because almost all the coins are now in tilt and then count only one day of your investment into tripple or more. it is the real beauty of investing in cryptocurrency, althoug there is risk but it is manageable just just buy, hold it, and then sell.
Investment or investment must be manageable because the risk is around your investment and therefore every type of investment is always associated with risk.

[pathapoddo]

How much risk you can afford, you should take that much of risk. You can also try protfolio investment. It can reduce your risk about investing. So try this. Best of luck.

[Dayan1]

How much risk you can afford, you should take that much of risk. You can also try protfolio investment. It can reduce your risk about investing. So try this. Best of luck.

Yes it is right to know how much risk you can afford, and for me the first  thingis to manage the risk is to invest what you can afford to loose because investments might fluctuates any time so better to invest the money that might not bothered you. Second is diversification , if you will going to invest in crypto market , you should diversify your assets, so even if one investment dies at least you have other investment on other coins. Diversification is a general tip for all types of investment.

[lucyhahaha]

Many risk was faced by beginner in ivesting their money in cryptocurrency, they have take promised by an ico investor to buy their ico but ico was failed and scam, we have get many result about altcoin or ico to participated and invested our money there, because we have check source of ico it self and know about how secured of ico to joined and invest our money there. We know many website could check secured or not some ico project.

[Dread Pirate Roberts]

Do your own research before using your money for anything like investing or trading in coin.
You definitely do not want to lose your assets foolishly for lack of information or for receiving invalid information.
and also always wise in making decisions and consistent in running it. You may be able to spend money for the investment. but you should also have a plan for your finances.

[Deepa18dec]

The first thing we have to do is make plans and targets before we invest in cryptocurrency, because the price of cryptocurrency is like a roller coaster so if we do not have a plan we will lose.

Yeah, that's right. And even if you take all the precautions like buying the right coins and diversifying your portfolio, when Bitcoin goes down, everything goes down, just like what's happening right now. No one can save you or me from that.

[bololord]

Investments are always risky.Moreover, in the unregulated world of cryptocurrencies.To reduce the risk of loss of funds you need to invest not all of your fundsSome part should still be left

That is correct because in every investment there's always a risk, but to minimize the risk we should have proper knowledge before we put our money or we should invest what we can afford to lose and crypto investment there always a right timing on when to buy and when to sell.

[aconbig]

There are many ways to reduce the risks like you can diversify in multiple coins. Diversification gives you protection in case one coin falls rapidly.

[HJIOJGG76]

of course for you to be able to manage the risks in any investment especially in your crypto currency should be every bit thinner in it up to the greatest once .. how it works. it's a scam or not..and most importantly never trust anyone who tells you give them money and they can do that, investing in the risk of cryptocurrency is sometimes higher compared to other investments but if you understand to manage with investment cryptocurrency, your profits are also much higher than what you expect due to very fast price volatility to go up and down.

[sepeda karat]

Choosing an investment alternative with careful consideration and not just because of tempted results. In investment there is a standard formula: the potential return on an investment is always directly proportional to the risks. Aggressive investment alternatives (have high returns) also contain a relatively high risk.
# Beware,, Avoid Risk / Reward Risk Trap
Risk management controls in stock investing are the right thing to do and should be well understood. In analyzing the risk there are usually two approaches that are technical and fundamental analysis with the following illustration of risk ratios:
To minimize risks in stock investments, first understand the following risk / reward calculation steps:
-Choose a stock with good fundamentals, Do not put all our investments in one type only, If playing a stock, buy what is known and understand what to buy, Use basic trading principles ie buy low when high, Train the experience starting from the cheap stock price, The weakness of the above is that it takes a long time, but the benefits, you will be more careful in stock investment so that the risk is more controlled.