How to manage the risk in investing cryptocurrency?

[cephito]

A virtual account does not give a real market situation. The whole essence of trade can be understood only by trading real money

[Sled]

Don't go all in. That is the most simple rule that you should follow in order to avoid having a high risk in investing or trading cryptocurrency because since the market of the cryptocurrency is volatile then you can easily lose a lot of money when you go all in and it is best for you to learn to diversify and learn to do some research first before doing any action.

[squog]

I think the OP covered everything in the initial post. For me what i would suggest is invest money you are willing to lose. If you think you can't live without a certain amount then don't invest it. Also, diversify your portfolio so other coins can pick up the slack of less performing coins.

[ucingucingan]

To reduce the risks that may occur when we invest in crypto currency, the only salaj is not easily provoked to take a position in every price movement, do the best possible analysis so that we do not take the wrong position

[g-unit]

Cryptocurrency investing is always a risk. You can't be exactly sure that some kind of project will be successful. So you need to study the market to find promising projects. You also need to diversify your investments to avoid big losses. Cryptocurrencies are very volatile so you have to be patient to not sell all when market is red.

[tlqewcwf]

In the encrypted market, the risk is very high. It is possible for people to lose all the money. I think it is necessary for us to have a clear plan when we invest in this high-risk market. We must set our goal to control the scope of risk volatility.

[KurororLus]

Always remember to know your investment appetite, AND your investment capabilities. it should be ONLY yout extra money that will not affect your financials if you lose that certain money.

[Name: Claudio]

Invest money only according to your expense, don't use all your savings and salary to invest on projects, be careful also to invest with someone who offer you investment with x5-10 income by just giving your money... It's usually scam.

[Bacotan Bae]

We must understand that investing cryptocurrencies is so risky that it can make our money run out in a short time, the best way to avoid big losses is to divide the money into various coins so that if there is a coin that goes down then we can still hope with another coin.

[speedy963]

We must understand that investing cryptocurrencies is so risky that it can make our money run out in a short time, the best way to avoid big losses is to divide the money into various coins so that if there is a coin that goes down then we can still hope with another coin.

But as far as i can see, that doesn't really reduce the risk(maybe a little) but overall once you decide to invest, there is always risk involved and we cannot deny it. All i can suggest is that, keep on learning and study more about those coin you are investing, because behind each of those coins have their own platforms and their purposes why they decided to produce such kind of tokens, aside from it, you are also aware of their news and you keep tabs about what are the current events of their team and how they are doing, so you have the upperhand of what will be the next move of the market.

[xuzukami]

You should choose a variety of altcoin to invest in, and do not put all your capital into the same penny, so the risk is very high. If you hold a lot of coins, they will have the same increase and decrease, so the compensation you will not lose.

[darewaller]

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.

If you are interested of making investment in crypto currency and your knowledge is not yet enough or strong as others do, I think you should first go on long term investment like btc and eth. This two is good to buy but more likely advisable while at the lower price so that you can minuter you attitude everytime you see yourself the way it react on the fluctuation.while this actual give time to explore yourself in altcoin there is no best teacher aside with your own here the way you understand the others info.

There are even two ways about it; it is either someone is knowledgeable to understand the volatility and still ready to hold for the long term without bothering what is happening with the market or the person is knowledgeable enough to learn how to trade to be able to utilize the market fluctuations to their advantage. All these things are very important for anyone who is in the cryptocurrency world.

Managing risk should be done with wisdom and not foolishly. To manage our investments on various cryptos against risks must need long experience and and dedicated knowledge which cannot be possible from day one. But, making use of this forum will definitely guide anyone to be a veteran investor overtime for sure.

[Mancung]

i do always believe in "high risk high income".. some said that the future of this cryptocurrency is uncertain, my advice maybe refer to a wise phrase " Dont risk more than what you can afford to lose "

[klasik1980]

You should have an expertise or at least the basic knowledge of cryptocurrency, how to trade it and its working. Blindly following the lead of others is not going to be fruitful. Yes, in initial phase you may have to rely on expert advice, seek help from social trading programmes available on exchanges. But don’t just leave your money to them and sit back. You need to carry out research on your own. You are solely responsible for the profit and loss.

[biuifyus]

Any investment is risky, and if you want to reduce risk, you need to do research before you invest.

If you want to invest in crypto money, you can choose a portfolio to reduce risk.

[wuvdoll]

Any investment is risky, and if you want to reduce risk, you need to do research before you invest.

If you want to invest in crypto money, you can choose a portfolio to reduce risk.

Yes, if we are not ready to face some risk then we cannot go for any type of investments too. All we may do is, we can eliminate some degree of risk by choosing a right investment opportunity. Bitcoin must be a that kind of one investment opportunity.

Risk is actually attributable to every investment, and it is just the level that differs. Also, the risk that each person decides to take based on their pocket is also something that should be considered. Once you understand the risk involved in every investment, managing the risk is something anyone should obviously be ready for and the only way to go about that is to fill yourself with knowledge, invest wisely and see how those things can take you in the long run.

[Crypto24hrs]

 
Sell on the way to the top.
one thing is sure - you have to sell on the way up. DO NOT WAIT to sell all at the top because this is not going to happen.
Diversification is crucial
Another key point about risk management is the diversification,do no go all in,i mean do not put all your eggs in one basket,
split and spread your investment thanks

 

[BartS]

In my opinion risk management in crypto markets can be done only by take profit/ stop lose levels for fiat/ stable coins or btc (or btc then fiat/ stable coins) because all assets are highly correlated and diversification can't deliver needed effect

I agree with this, in cryptocurrencies diversification is almost irrelevant, it is true that a coin is not going to move exactly like every other coin but they moved very similarly, especially altcoins have a very strong tendency to follow the price of bitcoin, when bitcoin begins to go up then all the market goes up, but when bitcoin begins to go down that is when altcoins begin to go down as well, so it is better to invest most or all your money in bitcoin or as you suggest to sell your coins when you think the time is right.

[wozzek23]

It is gonna be risky always. You can't fully manage the risk involved in cryptocurrency. Learn the hard reality that you will lose your investment. If stock markets which some has stabilized returns, what about this investment that is unstable itself? Worse is no one is in control directly of the cryptocurrency, and that's gonna worsen your case if you expect a lot in here.

It used to be risky, at least this is what I think. After looking at the progress of a currency for years and listening only good about its future, is still a person has any doubt regarding the potential of asset, nobody can clear those doubts. The only risk is investing in new ICOs and currencies. For examples, Centra turned out to be scam. Investing in old coins like bitcoin is just beneficial.

[Marrionbitcoin]

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 my opinion, actually all businesses involved risks that we cannot run away from. That's part of being an investor and it's vulnerable. All we need to focus on is what should we need to do on our part. In digital currency, the prices really moves quickly, ups and downs. So we better to just stick to basic and effective strategy - buy low and sell high and you can never go wrong about it.