How to manage the risk in investing cryptocurrency?

[Tatars kun]

This editorial is part of a series written by editors and co-authored with a senior executive, thought leader, or scholar from a different field to explore new content areas and grand challenges with the goal of expanding the scope, interestingness, and relevance of the work presented in the Academy of Management Journal.

[imstillthebest]

One can manage the risks by investing in multiple coins. Another way is to put a stop loss so that you do not loose much on every trade.

Lol seriously? Investing on multiple set of coins can only lead to more losses. Much better if you can just stick to one or two coins that you think trusted and can give you a guaranteed return for your invested capital. Eth and btc is what i am talking about because these two giants are verry common and well known to give the best possible outcome among other coins.

Another way is to put a stop loss so that you do not loose much on every trade.

huh? What is that stop loss you are talking about? Can you explain further more about it? Im sorry for asking these silly questions, oh well maybe i will rather ask google for a faster responce.

Loosing is verry hard to stop or minimize because cryptos are verry unpredictable.

Overall,  luck is still the one that we all  need in order to earn a profit.

[rabs]

Risk factor is in every fied but we can minimize the risk factor to use different techniques accordingly. Dont invest all  at one place because it is too risky so must diversify the investment if one side you loose another side will recover the amount.

[yslyv]

yes it is risky really. you have to forget the money you invested in the beginning. you should accept your loss in advance. so you can trade more comfortably in this way.

[hispout]

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.

The only risk a person will see and face in the crypto market is his own error or carelessness. If an investor does not take care of his wallet and reveal its secret password key will create difficulties for him and this is the only risk in the crypto world. About the market buying and selling all the processes will go straight in line if the guiding principles are applied to it.

[Dodoymabs]

yes it is risky really. you have to forget the money you invested in the beginning. you should accept your loss in advance. so you can trade more comfortably in this way.

But such things can't be avoided especially if invest huge amount asset. Emotions is really hard to control and handling this is the real challenge. We have to accept the fact that we are really affected especially if we see sudden  dtop in the market.

[Jeff-reY]

Crypto always brings many risks.
You can set your own rules as an example that you use only money that you can afford to lose.
It is also important to have your emotions under control and not be greedy.

[bololord]

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.

The first thing that will do is to understand what is cyrpto currency, there's always a risk in investment so better to invest what can afford to lose to lower down the risk, Investing on crypto must know the characteristic of it by having a high volatility its like a double edge sword the faster gaining profit the faster lowering the price also. Before putting money on where project or crypto to invest always read the white paper, plat form and road map, then check if its supported by the community for that there's a chance gaining a profit.

[marcosfx]

First of all, in the begining of your acquintanance with the market try to invest in the most popular and the most safe coins judging by other people experince like bitocin or ethereummm and that would kinda keep you from too much risk.

[KnightElite]

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.

It is important to face risks for us to become successful person. We should be risk taker because there is a high chance that we can easiky fulfill our dreams. Do not be afraid to face the risks.

[Ewinsane]

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.

There is a high probability of the risk involved in investing of your money into the crypto currencies and that you need to be very much careful while making any kind of choice or decision as you will be held responsible for that decision at the end. You need to be sure that you are having enough of the knowledge and awareness regarding the things and that you are making the right choices.

[tetyulfania]

Its easy to manage of risking by invest money on cryptocurrency and you can start by invets your little money at trust cryptocurrency, you have take good time and moment where you buy bitcoin or altcoin at very low price, never try to buy altcoin or bitcoin when very high price, it will be make you loss your money. You have take chance when bitcoin very low price and you could buy more money do you have.

[vidprab5]

when you thinking invest in cryptocurrency then you devided your capital into 3 part,you always invest your one third capital,another one third invest when market fall and another one third keep reserve.
In this way you manage the risk in investing cryptocurrency.

Yeah for the newbies this strategy must be implemented. It must be considered as a compulsory one because if we lack this, we would be facing heavy losses even at start. They can turn the things off for us in continuing the chain further. So whenever a person needs to invest money somewhere, go for it but take little capital and start with best practice. If that works well, move to bigger one.

[safarabela]

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.

To avoid the risk of investing, better choose strong coins and potentially can survive, avoid to buy crypto when the price jumps high because the enormous value it can fall at any time and it's a huge risk.

[speedy963]

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.

There is a high probability of the risk involved in investing of your money into the crypto currencies and that you need to be very much careful while making any kind of choice or decision as you will be held responsible for that decision at the end. You need to be sure that you are having enough of the knowledge and awareness regarding the things and that you are making the right choices.

In the end there is nobody to be blamed once you risked money, so you were also right about being responsible about your investment and risks you will take. Also you are right about high risks when you want to aim higher, yes it is also part of the process, and more experience will lead you to much more knowledge and profits at the same time. In short failing and losing is also part of the process.

[Bosx1ne]

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 will face many risk before you become successful person. Most of the investment here in the cryptocurrency market is extrmely risky investment. You should only invest the money that you can afford to lose.

[Harrow30]

This is a very good option of earning in diaspora for persons considering a move to another country; especially for Canada that does allow for Cryptocurrency transactions. The OFW, I hope will not frown at this seeking transaction history of the persons involved. Well, away from the high risk involved, I did say the bounty/airdrop hunters stand at advantage because there is like virtually none of their money involved; they only earn without investing their money.

[Tory-Tory]

I learned from my bitter experience two basic rules:
- use a stop loss
- always leave part of the fiat money, so that I can buy a cheapened coins on a panic sale

[fiulpro]

I think if you are actively following the cryptocurrency you will be able to avoid those losses also you should remember that if you invest in several currencies at once you will be able to evade losses if they happen..
By active trading you can make money no Matter what the price is ..
Holding comes with losses and gains ... But if you follow the chart every hour and buy and sell according using your wallet you can actually make loads of money ..by trading.

[lythanhbinh]

How to manage risk in private cryptocurrency investment is very easy. Use capital or money that if issued, will not interfere with the need in some future time. Then just suppose the capital you put in to invest in cryptocurrency is just a bonus, so if it exists, it's nice, and if not there's no problem. That way you will enjoy long-term investment comfortably without being affected by FUDs or volatility.