How to understand risk in crypto

[kayvie]

Risk management is very important factor for us to become successful. Those successful traders and investors have good risk management. I'm a trader and I have good risk management for me to minimize my losses.

Indeed, it is helpful in terms of investing, trading and even in holding a cryptocurrency.
We should understand the risk of every investment, by applying risk management, we should predict and make a decision in the possible things to happen in our investment. Having an alternative action is one of the way to make sure that your investment will give you enough profit.

Those who don't know their risk are really the one who gave up easily, losing their money easily as they don't know the risk associated with what they are doing.

Risking in crypto is fine, but we should know our limits, how much % of our income we are willing to invest with and how much time we can devote to learn about crypto, it is not all about we know the project is great, but we should consider a lot of factors before investing.  

Those are the type of investors that the only reason that keeps them on investing is due to its trend.
They are more focus on making a profit without proper knowledge. Facing the risk is actually one of the factors of being a successful investor. Without facing it and knowing the risk of investment nothing will happen.
If fear comes first when it comes to investing, there is no way that an investor will keep on investing, losing his investment is possible.

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[cotton ball]

Risk management is very important factor for us to become successful. Those successful traders and investors have good risk management. I'm a trader and I have good risk management for me to minimize my losses.

Indeed, it is helpful in terms of investing, trading and even in holding a cryptocurrency.
We should understand the risk of every investment, by applying risk management, we should predict and make a decision in the possible things to happen in our investment. Having an alternative action is one of the way to make sure that your investment will give you enough profit.

Those who don't know their risk are really the one who gave up easily, losing their money easily as they don't know the risk associated with what they are doing.

Risking in crypto is fine, but we should know our limits, how much % of our income we are willing to invest with and how much time we can devote to learn about crypto, it is not all about we know the project is great, but we should consider a lot of factors before investing. 

Every investment have risk both with online investment and offline investment, before investing with bitcoin people have try to know what risk by investing with bitcoin when bitcoin have lower price. Crypto have big risk when price down and big result when price higher, have to be brave faced with risk of bitcoin and altcoin investment to make you stronger with bitcoin.

[virasisog]

To fully understand the risk in crypto , you must be ready to loose a lot of capital. Specially if you are a newbie lots of the risks are unknown
and to exploit crypto you need to understand the true value of the asset you are trading. Most of all on the latter part the top risks that you will be facing is your attitude. Are you going to be hodl, be greedy or be contented?

[Dreamr]

The cryptocurrency market is very volatile and unpredictable as well. the market has too much volatility which makes it very risky for many investors. though volatility is what makes the cryptocurrency market very profitable as well. remember, the higher the risk the higher the profits. thus, the more risk you take the more money you are going to get. 

[jarhed]

The cryptocurrency market is very volatile and unpredictable as well. the market has too much volatility which makes it very risky for many investors. though volatility is what makes the cryptocurrency market very profitable as well. remember, the higher the risk the higher the profits. thus, the more risk you take the more money you are going to get. 

With risks in the cryptocurrency market, you need to understand what cycle Bitcoin and Altcoins are currently going through. Of course there is a lot of risk and there is also a chance of making big money here.

[AicecreaME]

And for us to be able to understand the risk then we should be more patient and focused on reaching our goal why we are here investing in crypto.

being patient and foccused doesnt make you understand the risk  . what if you are  first timer on this industry ? to understand the risk we must read the instrunctions or the manual of crypto  .

 if you are foccus and patient of hodling , you still wont be able to know if what will happen next  . for advanced users  , we already know the risk that entails on cryptos so we must not act like we are noobs on this scene   .

Reading won't be enough if you won't put some dedication on it to understand it, yes it is true that holding will not give you any advantage if you want to make some profits but it is better than doing panic selling, in my opinion. The risk in cryptocurrency will be increase more if you are not prepared on entering this world, you'll be frustrated and brokenhearted because you can't make profits.

Only trading cryptocurrency assets will bring you more understanding about the situation and trends in the cryptocurrency market. You must have at least 1 year experience in trading on the cryptocurrency market.

You don't need to spend 1 year on understanding the risk of in cryptocurrency, it is too basic for everyone to understand as long as they are not narrow-minded people or don't have a low IQ (that's a different case, lol). Simple googling will help anyone to fully understand what cryptocurrency is and what are the risks we should be aware to avoid conflicts in the long run, the problem is, many people want to be spoon feed (ignore them).

[diazepam666]

The cryptocurrency market is very volatile and unpredictable as well. the market has too much volatility which makes it very risky for many investors. though volatility is what makes the cryptocurrency market very profitable as well. remember, the higher the risk the higher the profits. thus, the more risk you take the more money you are going to get. 

With risks in the cryptocurrency market, you need to understand what cycle Bitcoin and Altcoins are currently going through. Of course there is a lot of risk and there is also a chance of making big money here.

May I know what you want to say? You have roll the same risk factor again and again. When there is growth you need to sell and when the market value started falling you need to sell it as soon as possible.
If you do it in such way means you need to then there is no risks. If you are good in handle it you can make the profit.

[Magkirap]

********************NEWEST UPDATE*********************
Ok bitcointalk! I have been hard at work over this last week. I have just put the finishing touches on my site!

I will be posting a new topic soon about how to identify pricing bottoms by utilizing the creation cost. It needs a couple more revisions, but it will be ready today or tomorrow.

Here is the link to my site again:

https://www.amsinger.org

As always I love your opinions and criticism. You need friction to make fire

Aaron

P.S. The next client research will be covering the price volatility increases when bitcoin is high above the creation cost.

*******************************************************

*****************UPDATE*******************

Thanks so much everyone for your opinions and views!

I am setting up a complete redesign of the site, and I will be back in around a week with all new research and probing bitcoin questions.

The site will be down while I make all the upgrades and rebalance the scales.

Bitcointalk is one of the few places where you can go to meet crypto people. I am honored to speak and share my data and views with you all!

Love and hard work,

Aaron

******************************************

Here is an overview of how to find and UNDERSTAND your risk while investing in crypto. If you want to see how it works click this link:



I have previous posts on here explaining an optimal entry point based on fundamentals on Feb 7. This is an explanation of May 2 to May 27.

Creation Cost - The variable cost it takes to create a bitcoin

On May 2 BTC risk hit its lowest since February. BTC was 15.1% above its price floor This is a rare and likely profitable situation. The price floor represents the price at which whales start buying due to the natural cash flow of cryptocurrency. It represents the point of strongest buying capability in the market.

On May 27, after the 59% price spike, the risk level increased to 55.5%. The price had virtually no support and due to the high price every miner and holder with any awareness of risk levels was selling and not holding.

I created fundamental analysis in order to provide my clients the information that they need to measure risk and understand the crypto market. With the fundamental price floor you know automatically if the price is low or high. $3000/BTC was INCREDIBLY high 4 years ago, $3000/BTC now is a mortgage-your-house steal. With price floor and cash flow analysis my clients know when the market is high and when it is low.

I truly hope that you find this information useful to you. I made this because of the pain I felt in Nov 2018. I needed to know why it didn't go to zero, and I found the price floor.

Aaron

Helpful Links:

They say that the best teacher is the experience that is why it is important to have an experience in trading crypto assets to know what was the real environment in crypto market. Before we enter the crypto world we are probably aware about the risks involve in trading cryptos so we must monitor its price atleast every 2 to 3 days. Also, we dont need to panic. We should use our intellect rather than emotions.

[jarhed]

The risk in the cryptocurrency environment is very difficult to understand, because it is a new market, new technologies and even a new economy. Perhaps only in 5 years there will come an understanding of the risks for those who will develop here.

[Natalim]

The risk in the cryptocurrency environment is very difficult to understand, because it is a new market, new technologies and even a new economy. Perhaps only in 5 years there will come an understanding of the risks for those who will develop here.

No, for me its easy to understand the risk because I fully understand why crypto is and therefore I know the risk of investing.
If you are an investor, you need to be very ready to loss because investing in crypto is considered a high risk investment, which means you will take a higher risk and you are expecting a higher reward.

[DabsPoorVersion]

The risk in the cryptocurrency environment is very difficult to understand, because it is a new market, new technologies and even a new economy. Perhaps only in 5 years there will come an understanding of the risks for those who will develop here.

No, for me its easy to understand the risk because I fully understand why crypto is and therefore I know the risk of investing.
If you are an investor, you need to be very ready to loss because investing in crypto is considered a high risk investment, which means you will take a higher risk and you are expecting a higher reward.

But its not an easy task for most of individual to understand the risk of investment.
Investment should be something you can take to lose. If you are not prepared to face that risk, you are somehow not ready or you do not fully understand the investment you took part with.
Its easy to say that crypto investment is risky, but most of investors doesn't even know how to manage the risk itself for their investments.

[hotmom]

In order to understand the risks in crypto, you need to have experience in trading

[cotton ball]

This information is timely as a number of people could benefit, at least educationally. Practically speaking, bitcoin prises can defile technical analysis which means there is always an amount of risk attached to trading

Very true. Understanding risk is the cornerstone of ANY investment. I can't stop the mania, but I can help people profit from it.

Practically about how to invest with bitcoin and waiting when bitcoin price higher and lower will give you moment how to know risk with bitcoin and altcoin, you can know whit how to faced and ready your self with bitcoin and altcoin investment risk, when price dump you can feel how risk if bitcoin price have dump, always use your investment source from not your saving money for ready when price of bitcoin down.

[NeironixNV]

In order to understand the risks in crypto, you need to have experience in trading

Yes, you are right, but not necessarily in trading, you need to generally understand investments and finances.

[big pete]

For newbies and most experts, this might seem very difficult.
 But thanks to some platforms which provide education on how to go about the crypto-currency industry, there are unlimited information about crypto

[Ashong Salonga]

You can understand risk in cryptocurrencies through reading in Trading Discussion, bitcoin discussion and more. There are many topics that involve risk, you can learn a lot on it. Also, research in different sites could make you gain knowledge too.

[gandame]

If you are researcher you can understand crypto if you search and learn about it.
Risk in cryto is there because we can lost our money but in you have smart strategy you can get more profits.

[angrybirdy]

This information is timely as a number of people could benefit, at least educationally. Practically speaking, bitcoin prises can defile technical analysis which means there is always an amount of risk attached to trading

Very true. Understanding risk is the cornerstone of ANY investment. I can't stop the mania, but I can help people profit from it.

Practically about how to invest with bitcoin and waiting when bitcoin price higher and lower will give you moment how to know risk with bitcoin and altcoin, you can know whit how to faced and ready your self with bitcoin and altcoin investment risk, when price dump you can feel how risk if bitcoin price have dump, always use your investment source from not your saving money for ready when price of bitcoin down.

Basically you should know how to handle risk by applying risk management.
Analyzing your investment and evaluate the risk. Without applying risk management, your chances to minimize and to avoid losses is highly expected.

[bitbunnny]

Well, you will understand the risk best once you try loss on your own skin. 
However, to avoid that you need knowledge about Bitcoin and the market so try to get aa much information as you can from trusted sources. Also, don't forget that Bitcoin is volatile and majority of risk lies exactly in that feature.
Also, inform yourself about risk management in general, it will also help you with Bitcoin.

[diahsw]

waw good information, you are among those who have understood what bitcoin is and the risks, I have come to understand through your writing, I hope everyone here is pleased to read it and make them better understand more about the risks of using bitcoin ..