How to understand risk in crypto

[cocoadreamboy]

I can't tell you all how happy I am to see people sharing their experiences and views on this difficult and complex topic. I assume most of us have both made lots of money and lost lots of money in crypto.

The nature of crypto is very isolated, for example I have only met 3 other people that invested in crypto in real life. It has been difficult and painstaking to learn my crypto lessons. It is very nice to hear you all share your lessons and to see what you look for and think about when you look into crypto.

My heart is warmed by this.

I hope more people feel comfortable sharing their views,

Aaron

[denasha92]

There are 2 major risks which I believe is predominant in crypto. First is the loss of investment as a result of price fall, this part is very scary because you can decide to hodl a certain coin only to come back and discover that it has lost its value. Secondly is the issue of security, one has to be very careful else the person will become a victim of crypto wallet hack.

indeed the second point that you describe is a fundamental thing that becomes a risk which is scary for users, but the risks we have to manage with the good one does is take the right financial decisions and use a multilayered security to minimize hacker attacks. in addition, we should not be careless and should be able to learn and understand the various cases that occur so that we can prevent the risks that may occur

[Herbert2020]

the biggest risk that you need to understand, specially when you are entering the cryptocurrency market also known as altcoin market, is the risk of pump and dumps since they are the dominating force in the altcoin market and that is what you see every day of the week.
and since pump and dump is something 100% unpredictable, you will always be at the risk of getting dumped on by the pumpers who are controlling that altcoin's price and unfortunately there is no escaping that which is why many investors tend to never even get into any altcoins.

[ttcsalam]

It's just as good as that. Before investing, you should invest in thinking or analyzing news analysis. However, most investors do not complain about this. They only invest on the basis of the market growth and invest in them.

[Vinalians]

As I see the article about it, I can say that it will be very knowledgable to all people who use cryptocurrency and those who will just about to use any cryptocurrency. Well, it is pretty obvious that investing in cryptocurrency involves risk because money is also involved right. But, there are some guides in this article to know easily how and what to do before investing in a new project or any coin.
I just hope they just elaborate on some terminologies that they use in the article.

[cocoadreamboy]

indeed the second point that you describe is a fundamental thing that becomes a risk which is scary for users, but the risks we have to manage with the good one does is take the right financial decisions and use a multilayered security to minimize hacker attacks. in addition, we should not be careless and should be able to learn and understand the various cases that occur so that we can prevent the risks that may occur

I lost 2.35 bitcoin due to a security failure a few years back... It wasn't worth much then, but now it is worth a hearty chunk o change lol

Live and learn, and also don't make passwords while under the influence 

We all have to grow and develop to become the professionals that we strive to be. Opsec is now #1 priority for me, and I have never lost a single coin since

Aaron

[cocoadreamboy]

To understand your risk when trading anything you need knowledge. You can't become a currency trader overnight.

Forex has been around for sometime before cryptocurrencies. These people established an industry and have provided plenty of educational material to help people learn to trade.

First off, there is fundamental analysis and technical analysis. Long term traders use fundamentals more and short term traders look at technical (charts) analysis more - but both are needed.

Don't trade news is something you hear often in Forex.

Once you learn how to use the two analysis types above, and test test test various strategies that work, you will become better at reading the market by just eyes and ears.

Know what a bubble or pump and dump looks like. Don't get caught in these unless you are good at technical analysis.

Learn what ceilings (resistance) and floors (support) are. Learn what Fibonacci is and how it's used on a chart... etc, etc.

I'm no expert. I've dabbled with forex for many years with small money, and have won many trades and lost some as well.

Here is a site I used to learn trading: https://www.babypips.com/learn/forex
It's not specific to crpyto but you can get a bump in knowledge here.

I truly believe forex and crypto are matches made in heaven. I lean towards fundamental analysis based on creation costs more than technical analysis. This has led me to be usually too early in my trades, which I am always striving to improve. In 2017 I was too early on numerous trades by 2-4 months. Now I have generally shortened that to 1-2 months. I have learned that the market moves slower than I originally expected, and I have developed my risk analysis with that in mind.

You can find my crypto fundamental analysis here:

https://www.amsinger.org/sample-analysis

Markets are constantly changing and growing, good analysis is what gives us the power to measure that.

Aaron

[cocoadreamboy]

As I see the article about it, I can say that it will be very knowledgable to all people who use cryptocurrency and those who will just about to use any cryptocurrency. Well, it is pretty obvious that investing in cryptocurrency involves risk because money is also involved right. But, there are some guides in this article to know easily how and what to do before investing in a new project or any coin.
I just hope they just elaborate on some terminologies that they use in the article.

Which article are you referring to, and what terminologies would you like clarification on?

I am happy to help,

Aaron

[Genamant]

i think the best way to understand the risks in crypto is to experience it
oh my God i am speaking through my experience , its true . Sometimes knowing it is not enough
you think you know it but suddenly it slams to your face but then its a lesson learn.
Respect the Market , accept that not all you think is right. then you lessen the risks.

[shulc7]

The only way you can really understand the risks in crypto is knowing the basic ideology of the entire nature of the crypto ecosystem. This helps you to develop good strategies and plans to maximize your profits from your investments...

You must realize that you will take risks every day working with cryptocurrencies before you start dealing with Bitcoin and tokens. Risks can be not too high if you invest in reliable BTC and Ethereum.

[Mehr Sher]

The simplest formula to understand risk of market is to get knowledge about the Bitcoin History, if you have figured that out right, it will for sure bring results for us. However, if we are going in without doing our search on the history of Crypto, it will just not put us on right side. So this is where we really have to be watchful and try digging as deep as we can. It is the only and actual way that we will be able to benefit through.

[markgayamo]

Risk is part of our life when you try something new like investing and buying in cryptocurrency. If you are a risk taker then invest more of your money and if you want to buy coins that you think has a good potential to pump in the future then do it. Every people have their own decision when it comes to investments  and always be ready for the results of your choice.

[iHODL4]

in fact every investment must have a risk but how do we minimize the risk by analyzing and predicting a surge in prices and when we have to buy and sell.

Aside from these detailed info analysis, one must somehow understand and get to know their own "gut feel" surrounding everything (after filtering all that noise). Since after all is said and done, the ball definitely stops at some point and one must ultimately decide to trigger those inner demons to either buy or sell, or still hodl instead.

[xWolfx]

It's simple man, in Holding long term there is none.

Of course that there will always be the what if possibility inside our minds but we need to overcome those doubts and keep going. Of course, each person is responsible for their own actions and that is what scares many.

[TheCrimsonFucker]

It's great to understand, this market  encrypted because it is a market with great risk and variations, but because of this variation it ends up attracting many users without information, eventually investing and losing everything!

[paul_ammit]

The main issue here its hype. The majority don't even know what they're investing in and would prefer to listen to the crowd. And after that prices crash once you've bought into it. It's really important to arm yourself with bits of knowledge before hopping on the hype train.

[JohnBitCo]

Nice.
Crypto world involves two big main things, profit, and risk.
And how to know the risks, we can learn from ourself experience, others, and also crypto information. So far, we know that the risks of crypto worlds are losing, scammed, and also phishing and more other shitcoins. However, those risks always lead us for the better condition in order to be more aware and careful to avoid the risks.

Profit and Risk are directly proportional to each other. The higher the risk, the higher are the chances of profit. Since bitcoin & crypto are volatile in nature, both profit and risk are high. You can gain quick money and lose all money if you are not careful in crypto and trading.

[Oceat]

Nice.
Crypto world involves two big main things, profit, and risk.
And how to know the risks, we can learn from ourself experience, others, and also crypto information. So far, we know that the risks of crypto worlds are losing, scammed, and also phishing and more other shitcoins. However, those risks always lead us for the better condition in order to be more aware and careful to avoid the risks.

Profit and Risk are directly proportional to each other. The higher the risk, the higher are the chances of profit. Since bitcoin & crypto are volatile in nature, both profit and risk are high. You can gain quick money and lose all money if you are not careful in crypto and trading.

That's the risk on a positive side but what about the other side?
Well, here is a thing, i'd rather take the risk of losing while learning everything than losing without even understanding something.
Crypto world is a very risky place which means if you don't know anything you will be left with nothing if you try to get something without knowing something first.

[cocoadreamboy]

It's just as good as that. Before investing, you should invest in thinking or analyzing news analysis. However, most investors do not complain about this. They only invest on the basis of the market growth and invest in them.

That method is incredibly dangerous. If you do that you will get your money taken from you. Crypto news is propaganda, not even thinly veiled propaganda.

If you want to invest with knowledge of the true risk, check out my site:

https://www.amsinger.org

I made it so people don't have to trust "crypto news" which is like trusting a politician,

Aaron

[cocoadreamboy]

Profit and Risk are directly proportional to each other. The higher the risk, the higher are the chances of profit. Since bitcoin & crypto are volatile in nature, both profit and risk are high. You can gain quick money and lose all money if you are not careful in crypto and trading.

This is not an educated statement. This statement is false.

If I am walking on the edge of a cliff my risk is high, but I have nothing to profit off. You are promoting nonsensical and dangerous views of "investing", and I am very inclined to slap a:

THANK YOU PAID TROLL

All caps warning on this.

If you want true information about risk, check out my site:

https://www.amsinger.org

Always a pleasure slapping trolls,

Aaron