How do you define Risk Management with trading cryptocurrency?

[radjie]

I hear this term over and over again, "Risk Management" and how important it is for keeping our ducks in a row.  For us newbies that are trading a few coins here and there, what are some ways to really beef up our risk management?

choosing several types of coins to trade is clearly highly recommended because in this way we can find out which type of coin has good growth for trading and can consider a number of potential coins that are good enough to be able to profit and certainly can minimize the risk of loss. Do not focus on one type of coin that will be traded, because of course it is very risky and the opportunity to make a profit is very small, especially if we choose the type of coin that is wrong to trade.
It would be better to spend a little money first to trade on cryptocurrency and do not expect to get big profits first because in this way we can manage the money that has been spent to be further developed so that the trade that we do can last long and can get little by little profit after we can understand market price movements

[mrdeposit]

I hear this term over and over again, "Risk Management" and how important it is for keeping our ducks in a row.  For us newbies that are trading a few coins here and there, what are some ways to really beef up our risk management?

First of all, even if you don't make a profit, you have to protect your balance. Second, expression of "invest money which you can afford to lose" reduces your fears. And as you say you need to try some ways to manage or reduce the risk. Investing the money in one coin means that when the price goes down, the balance will also go down. However, you can easily reduce your risk by dividing it in time.

[danherbias07]

Indeed, only putting small percentages of your total balance in a trade is one of the best ways to manage your risk. I am doing same as well. Only difference is that I do not use stop loss. If a coin starts dropping significantly below my entry point I just purchase more coins.

If I buy 1 coin at level x and coins drops than I purchase 2 coins at level x-1. If It keeps dropping I purchase 4 coins at a lower level. In this way I am decreasing my profit level and already make profit on the highest coins even when they stay below that entry point.

How small of trades are you making?  Is it like $100 each trade or $20?  You much a bunch of small trades?

Will you use your whole balance to set a bunch of trades and wait for them to clear the higher limits, or do you set aside a certain percentage of your total balance for just sitting there safely?

I ask because right now all of my trades are just sitting there hanging, waiting for the price to go back up until it hits the sell limits that I set. Right now, I am just waiting. I think that it would be better having some of my account balance on reserve.

It is a slow market so what do you expect. It might really take a while before your orders will be sold.
I have different kind of tactics and mostly I buy new tokens and sell them in just a while. Most of them are being pumped right after listing and a lot are selling for almost a freebie just so they could get away fast.
Risky but the profits could skyrocket.

Never use the whole balance in just one token. You will just lose at those kind of tactics. Before it might work but not now in this dump market. If you still have the patience then you can wait for maybe a couple of days. Rush trading never works by now. Maybe if you have a large capital then it might work though.